United States Ambassador to Guyana, Nicole Theriot, said her government was not involved in the decision taken by local banks to close the accounts of candidates from Azruddin Mohamed’s WIN party.
Such decisions, she said, would be taken entirely by the local banks, possibly after discussions with corresponding banks in the US.
“This is a private sector discussion that I had nothing to do with, so maybe there were discussions with the banks here and their associated banks in the US,” Theriot said when asked about the closure of the local accounts being linked to concerns from corresponding banks in the US.
Four local banks- Demerara Bank, GBTI, Citizens Bank, and the New Building Society- closed accounts belonging to candidates of the We Invest in Nationhood (WIN) party. WIN is led by businessman Azruddin Mohamed, who has been sanctioned by the US Treasury Department.
‘Banks guided by strict regulatory obligations’ – GABI
On 11 June 2024, the Office of Foreign Assets Control (OFAC) of the US Department of the Treasury announced the imposition of sanctions against the Mohamed family—specifically targeting Nazar Mohamed, his son Azruddin Mohamed, and their businesses: Mohamed’s Enterprise, Hadi’s World, and Team Mohamed’s Racing. These sanctions were related to alleged gold smuggling and corruption.
As a result of the OFAC sanctions, the Mohameds’ business licences were revoked, and their bank accounts were closed.
Mae Thomas, the former Permanent Secretary in the Ministry of Home Affairs, who was also sanctioned, and her family members had their accounts closed, too.
Individuals closely associated with sanctioned persons or entities may expose financial institutions to serious legal and financial risks. As such, banks are taking steps to protect themselves.
This caution stems from the need to safeguard their correspondent banking relationships. A correspondent bank is a foreign bank that helps a local bank conduct international transactions and business. Instead of establishing branches overseas, local banks work with correspondent banks to send money abroad, facilitate international card payments, and handle accounts and documentation related to cross-border transactions.
Theriot, however, clarified that the OFAC sanctions are for the US and pertain only to business being done with or in that country.
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