Guyana -- Travel Rule Implementation Regulatory Overview

Guyana, as a member of the Caribbean Financial Action Task Force (CFATF) and therefore committed to implementing the Financial Action Task Force (FATF) Recommendations, has taken steps to implement the FATF Travel Rule (Recommendation 16, as applied to Virtual Assets and VASPs via Interpretive Note 15).

Here's a breakdown of its status:

1. Whether Adopted and Effective Date

• Adopted: Yes, Guyana has made legislative amendments to include Virtual Asset Service Providers (VASPs) within its Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework, thereby adopting the requirements that underpin the Travel Rule.

• Effective Date: The key legislative instrument is the Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Act 2023 (No. 4 of 2023). This Act amended the principal AML/CFT Act 2009 (Cap. 10:11) to include virtual assets and VASPs. While the exact gazetting date marks its legal effectiveness, the practical implementation and issuance of specific guidance for VASPs are ongoing.

  • Reference:
    • While a direct URL to the gazetted 2023 Amendment Act is challenging to find publicly via official government channels (often requiring specific legal database access), the fact of its passage is confirmed by international bodies.
    • CFATF Follow-Up Report on Guyana (2023): This report would detail the legislative changes made by Guyana to address FATF Recommendations, including R.15 (New Technologies) and R.16 (Wire Transfers, extended to VASPs). These reports typically confirm the enactment of relevant legislation.

2. Threshold Amounts

• Guyana's legislation is expected to align with FATF Recommendation 16 for wire transfers, which has been extended to VASPs.
  • For transfers between VASPs, the Travel Rule generally requires the originating VASP to obtain and transmit certain originator and beneficiary information (name, account number/wallet address) for transactions with no de minimis threshold (i.e., zero threshold for VASP-to-VASP transfers of required basic information).
  • For transactions exceeding the equivalent of USD 1,000/EUR 1,000, the originating VASP must obtain and transmit more detailed information, including the originator's address or national identity number, and the beneficiary's address or national identity number.
  • For transactions exceeding the equivalent of USD 3,000/EUR 3,000, the originating VASP must obtain and verify even more comprehensive information on the originator.
• Specific guidance from the Financial Intelligence Unit (FIU) or the Bank of Guyana (BoG) for VASPs operating in Guyana would clarify any specific local thresholds or nuances.

3. Which VASPs Are Covered

The Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Act 2023 would have introduced a definition of "Virtual Asset Service Provider" (VASP) that aligns with the FATF definition. This typically includes:

• Exchanges between virtual assets and fiat currencies.
• Exchanges between one or more forms of virtual assets.
• Transfer of virtual assets.
• Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets.
• Participation in and provision of financial services related to an issuer's offer or sale of a virtual asset.

Essentially, any entity in Guyana that conducts one or more of these activities for or on behalf of another natural or legal person is considered a VASP and falls under the AML/CFT regime, including the Travel Rule.

4. Technical Implementation Requirements

• Like most jurisdictions, Guyana's legislation and regulations typically do not mandate a specific technical solution (e.g., TRISA, Sygna, Travel Rule Protocol) for Travel Rule compliance.
• Instead, VASPs are required to:
  • Establish systems and controls to collect, verify, store, and transmit the required originator and beneficiary information accurately and securely.
  • Ensure interoperability with other VASPs to exchange this information.
  • Maintain records of all virtual asset transfers and associated Travel Rule data for a specified period (typically 5-7 years).
  • Implement robust data security and privacy measures to protect the transferred personal information.
• The FIU or other supervisory bodies may issue guidance or recommendations on best practices for technical implementation.

5. Penalties for Non-Compliance

Penalties for non-compliance with AML/CFT obligations, including the Travel Rule, are stipulated in the Anti-Money Laundering and Countering the Financing of Terrorism Act 2009 (Cap. 10:11) as amended. These penalties can be severe and typically include:

• Administrative Sanctions: Fines, directives to cease and desist, revocation or suspension of licenses, and public reprimands by the supervisory authority (e.g., FIU, Bank of Guyana).
• Civil Penalties: Monetary penalties imposed by regulatory bodies.
• Criminal Penalties: For serious and deliberate breaches, individuals and corporate officers can face substantial fines and terms of imprisonment. The specific amounts and durations would be detailed in the Act.
• The Act typically provides for penalties for:
  • Failure to report suspicious transactions.
  • Failure to perform due diligence.
  • Failure to keep records.
  • Obstruction of investigations.

Key Legislation & Guidance (Where to Look)

• Anti-Money Laundering and Countering the Financing of Terrorism Act 2009 (Cap. 10:11) and its Amendments (especially 2023): This is the primary legislation.
  • Search Tip: You might need to look for "Laws of Guyana" or "Guyana National Assembly Acts" on the official government portals.
• Guyana Financial Intelligence Unit (FIU) Website: The FIU is the primary body for AML/CFT oversight and often publishes guidance, circulars, and advisories for reporting entities.
  • URL: https://www.fiu.gov.gy/ (Check their "Publications" or "Guidance" sections).
• Bank of Guyana (BoG) Website: As the central bank, BoG may have a role in regulating or supervising certain financial activities, including those involving virtual assets.
  • URL: https://www.bankofguyana.org.gy/
• CFATF Mutual Evaluation Reports and Follow-Up Reports for Guyana: These reports provide detailed assessments of Guyana's compliance with FATF Recommendations and identify areas for improvement. The latest Follow-Up Reports would confirm the legislative status of R.15/INR.15.
  • URL: https://www.cfatf-gafic.org/index.php/documents/cfatf-mutual-evaluation-reports/guyana

In summary, Guyana has legislated the inclusion of VASPs under its AML/CFT regime, which implies the adoption of the Travel Rule. The practical implementation, including specific guidance from the FIU or BoG on thresholds, technical requirements, and enforcement, is an ongoing process that VASPs operating in or with connections to Guyana need to actively monitor.