News Room Guyana Reports : Citizens Bank has begun closing the accounts of candidates affiliated with the party of US-sanctioned businessman Azruddin Mohamed. This action follows similar measures taken by Demerara Bank and GBTI, reflecting a broader trend among local banks to enhance compliance with international banking regulations, particularly those related to Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT).
The sanctions imposed on the Mohamed family by the Office of Foreign Assets Control (OFAC) of the US Department of the Treasury on June 11, 2024, targeted Nazar Mohamed, his son Azruddin, and their businesses—Mohamed’s Enterprise, Hadi’s World, and Team Mohamed’s Racing—over allegations of gold smuggling and corruption. In response to these sanctions, local banks closed the accounts of those associated with the Mohameds, including Mae Thomas, the Permanent Secretary in the Ministry of Home Affairs, who was also sanctioned.
Financial institutions are increasingly cautious about engaging with individuals linked to sanctioned persons, as such associations pose significant legal and financial risks. Banks must protect their correspondent banking relationships, essential for conducting international transactions, and avoid potential repercussions from engaging with sanctioned entities.
When a person is sanctioned by OFAC, local banks are required to block any assets or property under their control and halt all transactions involving the sanctioned individual. This includes freezing accounts, stopping transfers, and terminating all dealings, thereby necessitating strict compliance measures.
Azruddin Mohamed has accused the government of political persecution; however, banks are prioritizing their institutional interests and regulatory compliance in these actions against his party’s candidates.
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