Remote VASP serving residents in Guyana

Criminal prosecution of alleged fraudsters utilizing digital assets.

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

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

Not a direct regulatory fine, but criminal charges laid.

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

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).

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

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.

Regulator Name: Bank of Guyana (BoG)

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Failure to report suspicious transactions.

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.