In a concerning revelation at an Illicit Trade Conference held at the Marriott Hotel in Georgetown on Wednesday, it was disclosed that the market share of illicit cigarettes in Guyana has soared to an estimated 28%.
This rampant illegal trade not only jeopardises legitimate businesses but also results in an alarming loss of around $1 billion in government revenue.
The conference, organised by the Private Sector Commission (PSC), shed light on the broader implications of the illegal trade of goods, which is intricately linked to organised crime, human trafficking, arms smuggling, drug trafficking, and money laundering.
Chairman of the PSC Komal Singh, articulated the gravity of the situation.
“Currently, Guyana is losing billions of dollars in revenue. The market share that some of these smugglers are capturing at the moment exceeds 25 per cent to 50 per cent in some areas. If we don’t find means and measures to put a stop to the smuggling in the shortest time, they can expect those numbers to rise,” Singh warned attendees.
Singh further emphasised that the conference signifies the start of crucial efforts to instigate positive change.
“Smuggling cannot continue, and collectively we need to put our heads together to ensure that we find all possible measures to curb smuggling in our industry,” he added.
In response to the rising tide of illicit trade, the PSC has launched an Illicit Trade Desk at its Secretariat. This initiative provides businesses and the public with a platform to report illicit activities, aiming to complement the efforts of law enforcement agencies.
The conference also sought to strengthen collaboration among key stakeholders from both public and private sectors, facilitating the sharing of insights and the development of actionable strategies to combat illicit trade in Guyana.
Director of the Financial Intelligence Unit (FIU) Matthew Langevine, underscored the critical link between illicit trade and money laundering. He referenced Guyana’s 2021 national money laundering risk assessment, which identified smuggling, tax evasion, the illegal narcotics trade, and fraud as the four most significant threats.
Over the past four years, the FIU has received 180 suspicious transaction reports, with roughly 10% linked to illicit trade and smuggling. Langevine called for enhanced cooperation between the private sector and law enforcement.
“The importance of maintaining a robust anti-money laundering framework is critical for fostering an environment where legitimate businesses can thrive, especially for a country like Guyana, which is on a significant growth trajectory with the emergence of our oil and gas sector,” Langevine remarked.
Minister of Home Affairs Robeson Benn also addressed the conference, acknowledging the challenges presented by illicit trade. He welcomed the collaborative spirit fostered by the event. “This is a significant opportunity for partnership that we share information, that we point out areas of concern, and that we engage with those in law enforcement who may know the usual players in smuggling,” Benn stated.
As Guyana grapples with the repercussions of illicit trade, the collective commitment demonstrated at the conference marks a pivotal step towards safeguarding the nation’s economy and enhancing the integrity of its markets.
