GLIMMER OF HOPE IN GUYANA'S ANTI-MONEY LAUNDERING

C O N F I D E N T I A L GEORGETOWN 001313

SIPDIS

SIPDIS

CARACAS FOR LEGATT,
PORT OF SPAIN ALSO FOR DEA AND LEGATT,
JUSTICE FOR OPDAT - RLIPMAN,
SOUTHCOM ALSO FOR POLAD

E.O. 12958: DECL: 12/15/2015
TAGS: SNAR EFIN PGOV KCRM GY
SUBJECT: GLIMMER OF HOPE IN GUYANA'S ANTI-MONEY LAUNDERING
FIGHT

REF: A. GEORGETOWN 323

B. GEORGETOWN 370

Classified By: Political Officer Benjamin Canavan
for reason 1.4(b)


1. (C) SUMMARY: Guyana's Director of Public Prosecutions met
with PolOff on December 13 and indicated that she is
preparing what would be a watershed money laundering case.
Two suspects implicated in a 2004 UK drug bust received wire
transfers in Guyana in 2002 totaling almost USD 300,000 and
exchanged that money into Guyanese currency. END SUMMARY.


2. (C) On December 13, PolOff met with Acting Director of
Public Prosecutions (DPP) Shalimar Ali-Hack. The DPP is an
independent entity responsible for the prosecution of major
criminal cases in the High Court and less serious criminal
offenses in the magistrates' courts. Ali-Hack has spent her
entire career in the DPP's office, becoming Acting DPP in
January 2005. During the meeting, she mentioned a money
laundering case that she is prosecuting herself in the hopes
of winning a landmark first conviction on money laundering
charges in Guyana.


3. (C) The two suspects in the case owned one property and
rented another in London when British authorities raided them
in 2004. The raids revealed the properties to house
operations making crack cocaine. UK authorities also found
approximately USD 70,000 and GBP 70,000 in cash at these
locations. The connection to Guyana is that the same two
suspects received wire transfers of approximately USD 300,000
in Guyana in 2002. The suspects then exchanged the USD for
Guyanese dollars in two tranches at a local currency exchange
"cambio".


4. (C) Ali-Hack wants to prosecute this case using the
provisions of the Money Laundering (Prevention) Act of 2000.
The consensus view of those trying to combat drug trafficking
and money laundering in Guyana is that the existing law is
too weak to effectively try persons suspected of committing
these crimes. The head of Guyana's Financial Intelligence
Unit is currently completing an amendment to the money
laundering legislation that he hopes to table in parliament
in 2006. A successful prosecution by Ali-Hack would be an
unprecedented event in Guyana where the courts have to date
failed to punish those responsible for drug trafficking.


5. (U) Efforts to indict people on drug trafficking and money
laundering charges in Guyana are hampered by several
statutory restrictions. Only original documents can be
admitted into evidence. This precludes everything from
electronic surveillance to testimony by video link. No
witness protection program exists. Guyanese regulations do
not allow plea-bargaining or immunity, making it almost
impossible to convince drug mules to cooperate. Cases often
take years to reach trial. Even before reaching trial stage,
a Magistrate's Court will hold a preliminary inquiry
equivalent to a full trial at which witnesses appear and
evidence is presented. Only then will the judge commit the
case to the High Court, where the trial is repeated. These
hurdles have prevented many narcotics cases from resulting in
prosecutions.


6. (C) The Director of Public Prosecutions position has been
vacant since September 2002 when the former DPP was wounded
in a drive-by shooting. Advertisements for the position have
appeared recently in local newspapers. Ali-Hack intends to
apply for the permanent position herself. Other potential
candidates include Justice of Appeal (and former DPP) Ian
Chang and Justice William Ramlall. Justice Chang served on
the Presidential Commission of Inquiry that exonerated former
Minister of Home Affairs Ronald Gajraj in March 2005 of
involvement in extra-judicial killings (see reftels).
BULLEN