i. What is a Supervisory?
According to section 2 of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Act 2009 supervisory authority (SA) means the authority set out in column 2 of the Fourth Schedule who has compliance oversight over the reporting entity set out in column 1 of the Schedule. Guyana Gold Board was designated a Supervisory Authority.
ii. Who we Supervise?
GGB was appointed the Supervisory Authority for Dealers in Precious Metals (Gold Dealers) on December 20, 2012, by the Minister of Finance who was acting in pursuant to the powers vested in him under the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Act 2009.
As such, under sections 22(2) and 23 of the AML/CFT Act, GGB is required to have oversight and monitor all Dealers in Precious Metals (Gold Dealers) to ensure they effectively assess the ML and TF risks faced by their entities. GGB must also ensure that Gold Dealers implement strategies to effectively manage and mitigate these risks, while also ensuring their full compliance with the requirements of sections 15, 16, 17, 18 and 19 of the AML/CFT 2009 (as amended).
iii. Functions of a Supervisory Authority
As part of its obligations as an SA, section 22 (2)(a) of the AML/CFT Act 2009 (as amended) requires GGB to specifically examine and assess its reporting entities’ policies, procedures, systems, and controls for identifying and managing ML/TF risk and take remedial action where appropriate.
GGB is also required to carry out supervision of compliance activities in accordance with the requirements of the AML/CFT Act 2009 and the Financial Action Task Force (FATF) Recommendations.
To monitor and ensure compliance by Licensed Gold Dealers with the requirements to combat money laundering and terrorist financing, consistent with the AML/CFT Act and FATF Recommendations, GGB has the power to:
- Enter into the premises of the gold dealership during ordinary working hours in order to
- Inspect or take documents or make copies or extracts of information from such documents;
- Inspect premises; and
- Observe the manner in which certain functions are undertaken;
b) Require any person on the premises to provide an explanation on any such information; and
c) Request and be given information relevant to money laundering and terrorist financing matters from its reporting entities.
In accordance with section 22 (2) (b) of the AML/CFT Act 2009 GGB is also required to issue instructions, guidelines or recommendations and provide training to the Gold Dealers on their obligations and requirements under the Act. GGB has since issued two guidelines for Licensed Gold Dealers; AML/CFT Guidelines for Licensed Gold Dealers issued in 2019 and the AML/CFT Guidelines for Licensed Gold Dealers (Forms) issued in 2021.