Demerara Bank closes accounts of several persons associated with “sanctioned individual”

Last Updated on Wednesday, 23 July 2025, 9:30 by Writer

Demerara Bank Limited (DBL) has decided to close the accounts of several persons who are associated with the Azruddin Mohamed-led We Invest in Nationhood (WIN) political party, but at least two account holders said they were at a loss about the reason for the decision.

DBL Chief Executive Officer Dowlat Parbhu told Demerara Waves Online News that the decision was made to ensure the bank complies with international financial sector rules governing relations with sanctioned individuals. “I don’t think it should be unclear. If they had read all the provisions of international compliance legislation and protocol dealing with an individual that was sanctioned by OFAC (Office of Foreign Assets Control), then they should be very clear. If those who are interested go and read it, they will find the reason why Demerara Bank had to take such a decision,” he told Demerara Waves Online News.

He explained that the decision was taken in light of DBL’s risk assessment. Mr Parbhu declined to say how many accounts had been affected by the decision “because that’s people’s personal information in a sense.” “Anybody, who has a relationship that poses a compliance risk with the bank, we have an obligation under the AML (Anti-Money Laundering) legislation to take action and de-risk and that comes with international correspondent bank guidelines,” he added. The DBL CEO said his financial institution was not obligated to report its decision to the Bank of Guyana.

Mr Mohamed was sanctioned by the United States Treasury Department’s OFAC in June 2024 for allegedly evading US$50 million in taxes payable to the Guyana government on more than 10,000 kilogrammes of gold exports. Almost immediately, the Bank of Guyana had rescinded the Mohameds foreign exchange dealers licence and eventually cut other business ties.

WIN General Secretary Odessa Primus said a number of her party’s candidates on Tuesday received letters from the bank stating that they would be discontinuing business with them.

WIN members Natasha Singh-Lewis and Duarte Hetsberger told a news conference Tuesday evening that they received letters from DBL stating that the bank has decided to close their bank accounts and they should take steps to wrap up all related business with that financial institution. If they do not do so by July 25, 2025 according to Ms Singh-Lewis, DBL said her account would be closed “automatically” and a manager’s cheque for the balance would be prepared for her to uplift at the bank’s Camp Street and South Road office.

Ms Singh-Lewis said she received a call from DBL on Tuesday informing her that an email was sent to her and when she checked there was a correspondence titled “Discontinuation of Banking Services with Ms Natasha Singh-Lewis”. “We write to inform you that Demerara Bank would be discontinuing all account maintenance services provided to you effective July 25, 2025. This decision was made in compliance with our internal policies and banking requirements,” she said, reading from the letter. The correspondence, she said, also states that “no further deposits will be accepted into your account”.

The former People’s National Congress Reform (PNCR) member said she had already consulted a lawyer and legal action would be taken “because the bank has a licence and a responsibility to do business with all Guyanese”. She said she had held an account there for 15 years.

Relating a similar interaction with DBL, she said other WIN candidates had received almost identical correspondence, a move that he claimed was politically motivated. “This is an attempt to undermine a democratic process,” he said.