SUPERBET UNDER AUDIT
An AML/CFT audit of Superbet operations has been ordered
An AML/CFT audit of Superbet operations has been ordered

…Gaming Authority says received info that one of the principals was jailed for money laundering
…outcome of audit will determine issuance of licence

AMID the controversy surrounding the issuance of a Good Standing Certificate to Guiana Holding Inc., operators of Superbet, the Gaming Authority on Wednesday broke its silence saying that it has been provided with information that one of the principals of the company was convicted of money laundering and served a four-year sentence.

The authority said it is due to this information that it has required of the company to conduct an audit, which will inevitably delay the process of the company getting a licence. Superbet lawyer, Anil Nandlall had claimed that a minister of government was behind the

hold up of his client’s licence.
Back in April the Attorney General’s Chambers and Ministry of Legal Affairs’ National Coordinating Committee had declared that SUPERBET had been operating without a licence. During its statutory meeting in March, the committee said measures should be taken to ensure SUPERBET faces the full force of the law. It said it had a priority to ensure all reporting entities become compliant with the AMLCFT legislation and that it remained committed to ensuring Guyana is not blacklisted for a failure to comply with international standards to combat money laundering and terrorist financing.

This announcement had triggered a series of statements from Nandlall on behalf of Superbet. However, in breaking its silence on the matter on Wednesday, the Gaming Authority outlined that Superbet applied for its Good Standing Certificate on September 14, 2018 and during the course of the authority’s due diligence, in January, 2019 it was provided with information, that one of the principals of Guiana Holding Inc., was convicted of money laundering and served a four-year sentence.

“Pursuant to our duty, an enhanced due diligence was therefore activated, in keeping with the guidelines issued under the AML/CFT Act 2009 (As Amended) and on February 14, 2019 a letter was sent seeking clarification from Guiana Holding Inc. (Superbet). A response was received on March 4, 2019, and steps taken to verify the information received,” the authority said in its statement.

It added that the response from Guiana Holding Inc. and additional information received by the Gaming Authority on April 5, 2019 during the verification process, after careful analysis, led to determination, that an AML/CFT audit of Superbet operations was necessary to determine the veracity of the information received. “This would allow the Gaming Authority to make an informed determination on the issuing of the Good Standing certification.”

According to the authority this was communicated to Guiana Holding Inc., on April 23rd, 2019 and they have in principle, agreed to the audit. “The Gaming Authority has been in the process of organising the audit team. A non-disclosure agreement has been sent to the said organisation for signature and for submission of a proposal and cost. A deadline of July 31, 2019, has been set for the conclusion and submission of the audit report,” the Gaming Authority said.

It added that the receipt of these documents will see the conduct of the audit and a report submitted to both Superbet and the Gaming Authority. The outcome of the audit will determine the Gaming Authority’s position on the issuing of the Good Standing Certificate.

The information has been communicated to all parties concerned, inclusive of the Minister of Legal Affairs and Attorney General. “The Gaming Authority has no authority to issue a Betting Shop Licence. The Gaming Authority is determined to bring regulation and internationally accepted standards to any form of gaming or gambling in Guyana to ensure Guyana’s success at the Mutual Evaluation in 2022 and is committed to doing so in a fair and even-handed manner. The Authority will continue to adhere to the principles of due process and natural justice in carrying out its mandate,” the authority stressed.

Meanwhile, in addressing the media reports on the issue, the authority said these seem to suggest, that the body was in some way victimising and deliberately withholding the Good Standing Certification of Superbet that is necessary to enable the receipt of their Licences.
The Gaming Authority clarified that the Good Standing Certification is just one of the nine requirements, when applying for a Betting Shop Licence from the Guyana Revenue Authority. These being: Approved building plan; Approval letter from the Central Housing and Planning Authority; Fire Safety Certificate from the Guyana Fire Service; Receipt of deposit made to the Accountant General; Copy of certificate of incorporation; Copy of identification of Directors; Copy of tax identification number (TIN) certificate; Letter of Good Standing from the Gaming Authority and Completed application form for Trade & Miscellaneous Licences.

The authority noted that prior to 2018, the Letters of Good Standing did not form part of the process, as such, there was no background check and due diligence done. With just the submission of the eight other requirements, the Betting Shop Licence was granted.
However, in 2018, to ensure due diligence and process were carried out for AML/CFT purposes, the Minister of Finance in his studied and lawful deliberation made the Gaming Authority the Supervisory Authority for Betting Shops, however, the lawful remit for the issuing of licencing remained with the Guyana Revenue Authority. The Good Standing Certificate was established by the Gaming Authority, as one of the “measures” as set out under Section 22 of the AML/CFT Act (As Amended) and sought to ensure that the applicants for Betting Shops licences were fit and proper, for the purpose of the said Act, the statement read.

“Let it be clear, the Gaming Authority is the Supervisory Authority of Casinos, Lotteries and Betting Shops for purposes of the AML/CFT Act (As Amended) while the Guyana Revenue Authority is the Licencing Authority for Betting Shops. Section 9 (2) of the Tax Act, gives the power to Licence for Betting Premises to the Guyana Revenue Authority. The Gaming Authority has made it quite clear to all applicants for Good Standing Certification, the purpose and time frames in which the activities can be concluded. They were also advised, that the due diligence process is in keeping with Section 22 of the AML/CFT Act (As Amended) and is a continuous process. The certification they were advised, can be withdrawn, if any evidence is uncovered in the future, that points to any breach of the AML/CFT Act 2009 (As Amended),” the statement said.
The time frame, the authority said is in keeping with internationally recognised standard, which range from as little as six months for organisations, such as, Superbet to as long as 18 months. This is dependent on the depth of investigation needed to be conducted.

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