News Room Guyana Reports : The Guyana Bank for Trade and Industry (GBTI) has begun closing the accounts of candidates linked to the party of US-sanctioned businessman Azruddin Mohamed. Several candidates have received notices indicating that their accounts will be closed and banking services discontinued.
This move follows similar actions taken by Demerara Bank and is part of a broader compliance review by financial institutions in response to international banking regulations, particularly those related to Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) laws.
When sanctions were imposed on the Mohamed family, all local banks, including those of Mae Thomas, the Permanent Secretary in the Ministry of Home Affairs, closed their accounts. Banks are wary of the legal and financial risks associated with individuals closely linked to sanctioned entities, prompting them to take precautionary measures.
The primary concern for banks is to safeguard their correspondent banking relationships. These relationships are essential for local banks to conduct international transactions, send money abroad, and facilitate cross-border payments.
As a result, local banks are exercising heightened caution regarding transactions with individuals associated with Azruddin Mohamed, as these connections could jeopardize their operations.
On June 11, 2024, the Office of Foreign Assets Control (OFAC) of the US Department of the Treasury announced sanctions against the Mohamed family, specifically targeting Nazar Mohamed, Azruddin Mohamed, and their businesses, including Mohamed’s Enterprise and Hadi’s World. These sanctions were linked to allegations of gold smuggling and corruption.
Following the OFAC sanctions, the Mohameds’ business licenses were revoked, and their bank accounts were closed. Azruddin Mohamed has accused the government of political persecution, but the actions taken by banks are aimed at protecting their institutional interests.
When an individual is sanctioned by OFAC, local banks face strict operational and legal obligations. They must immediately block any assets belonging to the sanctioned individual and prevent any transactions involving them, which includes freezing accounts and halting transfers.
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