WIN writes UN, CARICOM over account closures by Scotia & local banks

The We Invest in Nationhood (WIN) political party, led by U.S.-sanctioned businessman Azruddin Mohamed, has written to the United Nations (UN) and CARICOM to complain about the decision of Scotia Bank and several other local banks to close the accounts of some of its candidates.

WIN, in its letters to CARICOM Secretary-General Dr. Carla Barnett and UN Secretary-General António Guterres, named the Bank of Nova Scotia, the Guyana Bank for Trade and Industry, the New Building Society, and Demerara Bank.

Interestingly, Citizens Bank was not listed in the letters despite being one of the local banks that also closed the accounts of their candidates. The party released copies of the letters to the press on Wednesday via email.

WIN, through its General Secretary Odessa Primus, informed the heads of these organisations that the banks closed the accounts, cancelled loans, and denied financial services to its members and candidates.

The party is calling on the UN and CARICOM to:

• ⁠ ⁠Publicly condemn what it termed discriminatory practices and declare them an assault on human and political rights
• ⁠ ⁠Demand that all affected accounts be reinstated immediately and that members of the WIN Party have full, unhindered access to their salaries, savings, and financial services
• ⁠ ⁠Engage the Government of Guyana and the financial institutions involved to end this discrimination and to guarantee that no citizen is punished for the political party they support
• ⁠ ⁠Deploy observers and monitors to investigate and report on the matter and facilitate alternative financial access for those who remain excluded until their rights are fully restored.

The banks moved to close the accounts of WIN candidates over concerns about their association with Azruddin Mohamed. Institutions have been compelled to tighten compliance in line with international banking regulations, particularly those mandated by Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) laws, which are designed to prevent the use of illicit funds.

This heightened caution is not without precedent. Guyana has previously suffered the consequences of weak compliance. In 2016, both Bank of America and Citibank terminated correspondent banking relationships with local banks over concerns about money laundering risks and regulatory deficiencies.

These losses made it difficult for Guyana to conduct routine international transactions, including overseas wire transfers, and created disruptions for businesses and remittance services. The situation was part of a wider “de-risking” trend in the Caribbean, where U.S. and global banks cut ties with smaller jurisdictions they considered high-risk for financial crime.

On June 11, 2024, the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury sanctioned Nazar Mohamed, his son Azruddin, and their businesses over alleged gold smuggling and corruption. Former Permanent Secretary in the Ministry of Labour, Mae Thomas, was also sanctioned.