All banks have cut ties with Mohamed’s after US sanctions – Bank of Guyana confirms

In a decisive move, all banks in Guyana have closed accounts they had with the Mohamed’s family and their businesses following US sanctions, the Bank of Guyana has confirmed.

The US Treasury Department, 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.

Governor of the Bank of Guyana, Dr Gobin Ganga, Tuesday told the News Room that the banks decided to close the accounts of the Mohamed’s to de-risk themselves.

De-risking refers to the practice of financial institutions minimizing their exposure to risk by terminating relationships with clients or businesses perceived as high-risk. This process often involves banks and other financial entities severing ties with customers to avoid legal, financial, or reputational damage.

The Mohamed’s therefore now have no active accounts with any of the country’s commercial banks.

At this time, the Mohammed’s are the only gold dealers that have had their accounts completely closed by commercial banks, Dr Ganga noted.

The banking sector’s unanimous decision underscores their commitment to adherence to international regulations and sanctions.

The sanctions against the Mohamed’s were imposed after an investigation by several US agencies in relation to corrupt activities.

The government has asked the US government for a full disclosure of their investigations so local authorities can conduct their probe and take the necessary action.

Attorney General Anil Nandlall this week said the Department of Justice has acknowledged Guyana’s request, but it may take some time before the information is provided.