The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury says it will not direct any individual to conduct an activity that will undermine its internal policies and procedures, affirming the right of local banks to close the accounts of WIN candidates.
OFAC responded to queries from the We Invest in Nationhood (WIN) party, led by businessman Azruddin Mohamed. The businessman, his father, Nazar Mohamed, and several of their businesses were sanctioned last year for alleged acts of corruption and gold smuggling.
In the queries, WIN representatives asked about the need to close the bank accounts of candidates of Azruddin’s party. In the full response now shared publicly by WIN, OFAC said there would be ramifications for individuals involved in any transactions with the sanctioned individual, but not for mere association.
In the letter responding to WIN, the US body said any implications of transacting with a political party led by an individual sanctioned by OFAC, or with members of such a political party, would depend on whether the sanctioned individual is involved in the transaction.
“Unless exempt or other authorised by a general or specific license from OFAC, transactions with sanctioned persons by US persons are generally prohibited, and non-US persons could also face sanctions risk for certain activities involving sanctioned persons, such as providing material support to them,” it noted.
However, OFAC also reaffirmed the ability of local banks to act based on their own due diligence.
“Please be advised that OFAC will not direct an entity to conduct activity that undermines its policies and procedures,” the body told the WIN representatives in the letter shared by the party.
The response from OFAC shared by WIN
WIN, in an early Sunday morning release, doubled down on earlier statements. It stated that the bank account closures were unjustified and politically motivated.
Joel Bhagwandin, a local financial analyst, disagreed with WIN’s statements and other reports.“Evidently, OFAC does not override the due diligence, risk assessment, or compliance standards of local banks. Guyanese banks, acting in accordance with their own risk frameworks and the law, were entirely justified in closing the accounts of members of the sanctioned political party,” he wrote on Facebook.
At least four local banks and one foreign bank have closed the accounts of WIN candidates over concerns about their association with the party leader. Banks were compelled to review their compliance measures in line with international banking regulations, particularly those mandated by Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) laws, which are designed to prevent the use of illicit funds.
Party representatives have threatened legal action against the banks since July. WIN also called for a boycott of the local banks and other associated businesses.
Some WIN candidates face bank account closures
The Office of Foreign Assets Control (OFAC) of the US Department of the Treasury, on June 11, 2024, announced the imposition of sanctions against the Mohamed’s family, specifically targeting Nazar Mohamed, his son Azruddin Mohamed, and their businesses, namely Mohamed’s Enterprise, Hadi’s World, and Team Mohamed’s Racing. These sanctions were connected to gold smuggling and corruption. Former Permanent Secretary of the Home Affairs Ministry, Mae Thomas, was also sanctioned.
Because of these sanctions from the US body, the business licences the Mohameds had were rescinded, and their bank accounts were closed. Thomas faced similar ramifications.
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