Custodial wallet / SaaS in Guyana

No Specific Crypto Licenses: There are no distinct licenses for "crypto exchanges," "crypto custody," or "crypto payment processors" in the same way there are for traditional financial institutions.

Regulator/Enforcing Body: Guyana Police Force, Special Organised Crime Unit (SOCU)

Bank of Guyana (BoG) Stance: The Bank of Guyana has generally adopted a cautious stance, issuing public advisories warning about the risks associated with virtual assets (volatility, scams, lack of consumer protection). While they acknowledge the emergence of crypto, they have not yet issued specific regulations or licensing requirements for VASP activities.

Bank of Guyana Official Advisory (March 2021): https://bankofguyana.org.gy/bog/news-and-updates/advisory-cryptocurrencies

March 2021: A prominent advisory reiterating that cryptocurrencies are not legal tender and are unregulated.

Ongoing: The BoG's stance has been consistently cautious since then, with similar warnings periodically reiterated through public statements and official channels.

Criminal prosecution of alleged fraudsters utilizing digital assets.

The duo (Garcia-Lopez and Ishmael) faced over 100 fraud charges related to bilking Guyanese citizens of billions of dollars.

Assets were frozen and seized by the state as part of the criminal proceedings.

They were granted bail totaling hundreds of millions of Guyanese dollars (e.g., GYD $200 million each for many charges, reduced to GYD $10 million for some).

Arrests and initial charges began in August/September 2020, with ongoing court proceedings and further charges laid well into 2021 and 2022.

Recent updates on their court cases and other related individuals continue into 2023 and 2024.

Yuri Garcia-Lopez and Ateeka Ishmael were arrested, charged with multiple counts of fraud and operating a pyramid scheme.

They have been embroiled in lengthy court battles, with charges being consolidated and preliminary inquiries ongoing.

Other individuals involved in promoting or facilitating the scheme have also faced charges.

The legal proceedings are ongoing, aiming for convictions and restitution for victims.

Not a direct regulatory fine, but criminal charges laid.

Public advisories and warnings from the central bank about the risks of cryptocurrency, signaling a cautious and largely unregulated stance.

Regulator Name: Bank of Guyana (BoG)

Date: The BoG has issued several advisories, with significant ones within the last 3 years:

Financial Intelligence Unit (FIU) of Guyana

Anti-Money Laundering and Countering the Financing of Terrorism Act 2009 (as amended) (AMLCFTA). This Act, enforced by the Financial Intelligence Unit (FIU) Guyana, serves as the cornerstone for financial institutions and designated non-financial businesses and professions (DNFBPs), which now explicitly include VASPs.

This is the principal Act establishing the AML/CFT framework.

This amendment, along with others, updated the original Act to address evolving FATF standards and typically broadened the scope of "reporting entities" or "financial institutions" to include new types of services, implicitly or explicitly bringing VASPs under its ambit.

These regulations provide detailed rules and procedures for implementing the provisions of the AML/CFT Act.

Various FIU Guidance Notes: The FIU often issues specific guidance notes, advisories, and directives to reporting entities, including those relevant to virtual assets, to clarify obligations.

Identifying the Customer:

For individuals: Name, address, date of birth, national identification number (e.g., National ID card, passport number), and obtaining a copy of the verifying document.

For legal entities (companies, trusts, etc.): Name, legal form, address, names of directors/partners, proof of incorporation/establishment, and details of the registered office.

Verifying the Customer's Identity: Using reliable, independent source documents, data, or information. This often involves comparing documents against official databases or using digital verification tools.

Identifying and Verifying the Beneficial Owner: Determining the natural person(s) who ultimately own or control the customer, or on whose behalf a transaction is being conducted.

The concept of 'understanding the purpose and intended nature of the business relationship' in Guyana's AML/KYC framework has been significantly altered by the rapid automation of due diligence through AI-driven seismic analysis and the heightened sovereign risk from the Venezuela border dispute, changing how business relationships are assessed.

Ongoing Monitoring: Continuously scrutinizing transactions made throughout the course of the relationship to ensure they are consistent with the VASP's knowledge of the customer, their business, and risk profile, including, where necessary, the source of funds.

Enhanced Due Diligence (EDD): Applying more stringent measures for higher-risk situations, such as:

Customers with complex or opaque ownership structures.

Politically Exposed Persons (PEPs) and their family members/close associates.

Customers from high-risk geographic locations (e.g., countries subject to FATF countermeasures or known for high corruption/crime rates).

Transactions involving high amounts or unusual patterns.

New and complex technologies (like certain virtual assets) where anonymity concerns are higher.

"Travel Rule" (FATF Recommendation 16): While specific domestic legislation implementing the travel rule for VASPs might still be evolving, FATF standards require VASPs to obtain, hold, and transmit originator and beneficiary information for virtual asset transfers above a certain threshold (typically equivalent to USD/EUR 1,000). VASPs in Guyana should be preparing for or already implementing this where feasible, especially for cross-border transactions.

Screening for Sanctions: Customers and transactions must be screened against national and international sanctions lists (e.g., UN Security Council sanctions, OFAC sanctions).

Obligation to Report: VASPs are legally obligated to report any suspicious transaction or activity to the FIU, regardless of the amount. A transaction is suspicious if the VASP has reasonable grounds to suspect that it may be related to money laundering or terrorist financing, or if it deviates from the client's usual activity or financial profile.

No Tipping-Off: VASPs and their employees are prohibited from disclosing to the customer or any third party that a report has been or will be made to the FIU (i.e., "tipping-off").

Timing: Reports must be made promptly, usually within a few working days of forming the suspicion.

Customer Identification Records: Copies of identification documents, verification data, beneficial ownership information.

Entity Targeted: Individuals associated with "Coinvest Guyana" and "Accelerated Capital Firm Inc. (ACFI)," particularly Yuri Garcia-Lopez and Ateeka Ishmael, along with others later implicated. Violation Type: Operating a pyramid scheme, obtaining money by false pretences (fraud), unlicensed financial operations. The scheme reportedly solicited investments with promises of high returns, often facilitated through digital means and sometimes referencing digital asset investments as part of its pitch, though its core was a classic Ponzi/pyramid structure.

Entity Targeted: General public, financial institutions, and implicitly, anyone considering operating an unregulated cryptocurrency business in Guyana. Violation Type: While not a "violation" in itself, the BoG warns against the inherent risks and unregulated nature of cryptocurrencies, implying that conducting such activities falls outside the regulated financial system and thus carries significant risks for participants. The advisories highlight that cryptocurrencies are not legal tender, are not regulated by the BoG, and offer no consumer protection. Penalty Amount: N/A (These are advisories, not direct enforcement actions with fines). Outcome: Increased public awareness of the risks associated with cryptocurrencies in Guyana, a clear statement that such activities are outside the regulated financial sector, and a deterrent for unregulated operations seeking legitimacy. This stance limits the growth of formal crypto businesses until a regulatory framework is established.

Outcome: Increased public awareness of the risks associated with cryptocurrencies in Guyana, a clear statement that such activities are outside the regulated financial sector, and a deterrent for unregulated operations seeking legitimacy. This stance limits the growth of formal crypto businesses until a regulatory framework is established.