Bankers association, Georgetown Chamber, lawyer say banks must abide by local, international rules

Last Updated on Saturday, 2 August 2025, 13:25 by Writer

The Guyana Association of Bankers Inc. (GABI) on Saturday said all licensed commercial banks here operate within a framework of national laws and international standards, in the wake of a call by the Azruddin Mohamed-led We Invest in Nationhood (WIN) political party for the public to boycott two commercial banks and their associated businesses.

GABI did not comment directly about WIN saying that several of its candidates have had their accounts cancelled by Demerara Bank Limited (DBL), and Guyana Bank for Trade and Industry (GBTI).

However, the Association said banks are guided by strict regulatory obligations, including Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) requirements, as well as global risk management practices. “These standards are critical to preserving financial system integrity, protecting depositors, and ensuring continued access to international financial markets, GABI added.

GABI says it remains committed to supporting a strong, inclusive, and compliant banking sector that serves the best interests of the Guyanese people and economy.

The association thanked the public for its “continued confidence in the banking system and reaffirm our dedication to professionalism, transparency, and national development”.

Meanwhile, the Georgetown Chamber of Commerce and Industry (GCCI) added its voice to that of the umbrella Private Sector Commission (PSC) in condemning WIN’s call for Guyanese to stop doing business with DBL and GBTI as well as their associated companies. Demerara Bank has publicly acknowledged that the decision was due to a risk analysis about doing business with someone who has been sanctioned by the United States’ Treasury Department’s Office of Foreign Assets Control (OFAC).

OFAC imposed the sanction on Azruddin Mohamed and his father, Nazar “Shell” Mohamed for allegedly evading more than US$50 million in taxes payable to the Guyana government on the export of more than 10,000 kilogrammes of gold.

The city chamber said it “strongly rejects and condemns” WIN’s calls for the boycotting of several local businesses following the closure of bank accounts of members of that party by the private sector businesses in the financial industry. “To advocate for the boycotting of these banks and businesses associated with these institutions are dubious and self-serving, and such calls must be strongly rejected by the public,” that business support organisation said.

The GCCI pointed out that OFAC states in relation to its sanctions on the Mohameds that “Financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person.”

The Chamber supported the banks’ decisions, saying they are within their right to safeguard their operations from inherent risks associated with conducting business with such individuals.

“Weaponising the economy for political ends threatens livelihoods, undermines investor confidence, and erodes the democratic values we staunchly defend. Businesses are not political battlegrounds – they are vital pillars of our national economy and social stability,” the Chamber added.

Guyana’s economy and business landscape are at a crucial juncture, the GCCI said. “It is important that this trajectory is not impeded or obstructed by penalties as a result of rogue elements instigating reckless, divisive and dangerous actions that are destructive to private sector and national development,” the Chamber also said.

Meanwhile, Attorney-at-Law Timothy Jonas said credit and debit card holders could be blocked from doing business online if commercial banks lose their correspondent banking relationships with banks in the United States. “The day your bank in Guyana loses that relationship with the correspondent bank in the States because they allowed an Azruddin Mohamed to continue to bank with them or an associate of Mohamed or an associate of an associate. The day Republic Bank, GBTI, Demerara Bank, Citizens Bank, anyone of the local banks is punished because it has a customer and has not let go of that customer, you can’t go on Amazon and shop anymore, you can’t use your Visa card anymore, you can’t use your American Express card anymore and the next day that bank collapses financially,” he said on GlobeSpan24x7.

Mr Jonas resigned from A New and United Guyana (ANUG) political party about two months ago after its current leader Dr Mark France and his executive decided to join forces with WIN to contest the September 1, 2025 general and regional elections.

For its part, WIN suggested that the incumbent People’s Progressive Party Civic (PPPC) administration was behind the banks’ cancellation of the accounts. That party said such alleged action amounted to state-sponsored intimidation, threats, and punitive measures. “These banks have become nothing more than corporate footstools of the PPPC regime, dancing to the tune of a government that fears accountability and trembles at the rise of a new political force rooted in justice, equity, and nationhood.

WIN said those corporate actors must learn that they are not above the people and do not get to pick and choose which political views are “safe” for business and which ones are not. They are either neutral or they are political operatives. And if they choose to operate as agents of repression, they must face the consequences of public outrage and resistance,” the party added.