The availability of letters of credit (L/Cs) is under threat in Guyana, which has been ordered to pass amendments to anti-money laundering legislation by 13 November 2013.

Guyana's parliament is struggling to pass a suite of proposed amendments ordered in May by the global anti-money laundering watchdog, the Financial Action Task Force (FATF).

Blacklist impact

If Guyana fails to meet the November deadline, it will be put on the FATF blacklist.

The net effect of any country being put on the blacklist is that its international financial transactions become either unacceptable or only acceptable after intense scrutiny by financial institutions worldwide.

This means that Guyana's banks will find it very difficult to find L/C counterparties anywhere in the world for international transactions.

Amendments

To avoid being blacklisted, Guyana's parliament must criminalise arms trafficking and create new offences such as piracy, insider-trading, hostage-taking and trafficking in stolen goods.

It must also implement gaming controls and require NGOs to make information public and accessible.

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