Jagdeo: Banks right to shut down accounts of persons linked to sanctioned Azruddin

Days after one major local bank shut down accounts belonging to candidates on Azruddin Mohamed’s political party, Vice President Dr. Bharrat Jagdeo  defended the move, warning that Guyanese banks and the private sector must take U.S sanctions seriously or risk being cut off from the global financial system.

Speaking at his Thursday press conference, Jagdeo confirmed that former Permanent Secretary Mae Thomas — who was sanctioned alongside Mohamed by the United States — had her accounts closed by both Citizens Bank and Republic Bank.

“Several of Mohamed’s candidates have already had their accounts closed, and more banks will follow. They have no choice,” Jagdeo told reporters.

Jagdeo accused Mohamed’s camp of downplaying the repercussions of the US sanctions, saying they are misleading people by pretending it’s “nothing to worry about.”

“These people take it lightly — but the reality is, our local banks are part of the global financial system. They have to comply with sanctions or they risk losing access to correspondent banking relationships. No US bank will deal with a local bank that handles the money of someone under OFAC sanctions,” Jagdeo explained.

He stressed that candidates on Mohamed’s WIN party list are directly linked to a sanctioned individual and are therefore flagged for “enhanced scrutiny” by financial institutions.

“It’s different if you’re not on the list — but once you are part of his formal political submission, you’re caught in the net,” Jagdeo said.

Demerara Bank recently closed accounts of several WIN party candidates and at least one other major bank has signalled similar plans.

Jagdeo said the private sector must pay attention to how serious this is, pointing to the recent comments by the US Ambassador expressed concern that Azruddin was contesting in local elections and possibly make it into Parliament.

“The private sector should be worried — look at what’s happening with the Vreed-en-Hoop shore base. US companies are guided by Treasury’s stance, and any entanglement with sanctioned people can drag the whole project into risk,” he warned.

Mohamed and Mae Thomas were both sanctioned by the US last year for alleged involvement in massive gold smuggling and corruption schemes. Mohamed has publicly denied the allegations and is pushing ahead with his new political outfit, WIN — even as financial pressure mounts.

Jagdeo urged local businesses and banks not to jeopardise their future for what he called the reckless ambitions of a sanctioned gold dealer.

“Nobody should risk the future of an entire bank — or this country’s reputation — just to please one man who’s under international sanctions,” he said.