While noting Guyana’s efforts to counter money laundering, the U.S State Department has said the issue remains a major problem in the country.

In its annual International Drug Control Strategy Report, the U.S State Department noted that money laundering continues to pose significant challenges to Guyana and is affecting the nation’s economy and governance.

The Department described the Guyana Police Force as the ‘weak link’ in Guyana’s anti-money laundering enforcement programme. It noted that, most SOCU investigators are former patrol officers who receive very little training specific to financial crimes.

“For these reasons, the vast majority of money laundering cases go unprosecuted. To strengthen its AML regime, Guyana should fully implement existing laws, including pursuing asset forfeiture in full compliance with the law, and stricter oversight and transparency in high-risk sectors like gold export and public procurement. Investing in training for local law enforcement and financial regulators would also build the AML/CFT capacity of these authorities,” the State Department proposed.

The US noted that money laundering in Guyana has grown into a systemic issue involving both public officials and private citizens and is often linked to corruption and organized crime.

“Guyana’s vulnerabilities stem from the relatively small financial sector and limited regulatory resources that make it challenging to enforce stringent AML measures effectively. Guyana’s most recent anti-money laundering/combating the financing of terrorism (AML/CFT) national risk assessment (NRA) was finalized in July 2021, and Guyanese officials rated Guyana’s money laundering risk as medium high,” the State Department noted.

According to the U.S, the local gold mining sector continues to be a contributor to money laundering, explaining that gold smuggling in Guyana often facilitates money laundering, as persons would use illegal gold sales to disguise illicit funds and bypass regulations.

It said, in the mining sector, money laundering methods include large cash deposits using forged agreements of sale for non-existent precious minerals as well as cross-border transport of concealed precious metals to avoid payment of the relevant taxes and duties.

The report also noted SOCU’s investigation and charges of money laundering against former Deputy Commissioner of Police Calvin Brutus.

In 2024, billionaire father and son, Nazar and Azruddin Mohamed along with Permanent Secretary Mae Thomas were sanctioned by the US Government.

The Mohameds were sanctioned over claims of money laundering, gold under-declaration and tax evasion, while Thomas was sanctioned over her alleged facilitation of the Mohameds and their alleged wrongdoings and alleged acceptance of bribes.

The Guyana Government recently indicated that it was in receipt of information from the US Government and has passed that information on to the Police and the Guyana Revenue Authority for their own investigations. The Government has revoked and refused to renew a number of business licenses for the Mohameds and their many businesses, while the Permanent Secretary remains on the Government’s payroll as she is on administrative leave.

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