Monday, February 20, 2017

Frequently Asked Questions

General Questions

  • Can an individual have an account at the Central Bank?
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  • How does the Central Bank act as a Clearing House?

Can an individual have an account at the Central Bank?

No. The Central Bank does not open accounts, accept deposits, or offer loans to private individuals. The Central Bank acts as Banker to the Government and Commercial Banks.
 
How does the Central Bank act as a Clearing House?

The National Clearing House was established in 1998 and is located at the Bank of Guyana.  BOG through co-operative arrangements with selected commercial bank branches in other regions has designated them as Clearing House Facilities to act on its behalf.  Members of the NCH meet twice each business day, morning and afternoon to present cheques drawn on each other.  At the end of each session, the multilateral net position of members is calculated. The final net position is posted to the respective Reserve Accounts at the end of each business day.

Banking Division Questions

  • Can I send someone to encash my cheque?
  • What are the different Caricom currencies that the Bank of Guyana purchase?
  • Where can mutilated notes or coins be exchanged?
  • How can I tell if I have a counterfeit note?

Can I send someone to encash my cheque?

Yes. The individual must present to the Bank the following:

  • Identification of both parties (Identification Card or Passport)
  • The back of the cheque must be endorsed with:
  • the payee's name and address.
  • the name and address of the person encashing the cheque. 

What are the different Caricom currencies that the Bank of Guyana purchase?

The Caricom currencies that the Bank of Guyana purchases are:
  • Barbados dollars
  • Belize dollars
  • Eastern Caribbean dollars
  • Trinidad and Tobago dollars 

Where can mutilated notes or coins be exchanged?

Mutilated notes and coins can be redeemed at the Bank of Guyana. The Bank has the authority under Section 24 of the Bank of Guyana Act No. 19 of 1998, to prescribe the conditions under which mutilated or defaced or otherwise defective notes or coins may be exchanged.

The Bank of Guyana will exchange mutilated or damaged Bank of Guyana banknotes upon presentation of more than fifty percent of the banknote. Persons presenting mutilated or damaged banknotes for exchange are required to give a written explanation of the cause of the mutilation or damage.

How can I tell if I have a counterfeit note?

Bank of Guyana notes are designed with many security features to deter counterfeiting. The Bank has prepared a simple guide to aid in the detection of counterfeit.

If there is any doubt about the authenticity of a note, look for the security features

Bank Supervision Questions

What are the functions of the Bank Supervision Department?
 
Are all financial institutions in Guyana supervised by the Bank of Guyana?
 
Our company is interested in opening a bank in Guyana, what are the procedures / requirements?
 
How can I obtain a copy of the Financial Institutions Act 1995?
 
If I have a problem with one of your local banks could I direct my concern to the Bank of Guyana?
 
What is the position with Globe Trust Investment Company Limited (GTICL)?
 
  
What are the functions of the Bank Supervision Department?
 
The Bank Supervision Department is responsible for the supervision and regulation of financial institutions licensed by the Bank of Guyana.  In fulfilling these responsibilities, it evaluates applications for licences, monitors and inspects the activities of those licensed financial institutions.
 
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Are all financial institutions in Guyana supervised by the Bank of Guyana?
 
No, the Bank of Guyana only supervises financial institutions which are licensed under the Financial Institutions Act 1995 [No. 1 of 1995].
 
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Our company is interested in opening a bank in Guyana, what are the procedures / requirements?
 
You should follow the licensing procedures listed in Supervision Guideline No. 2
 
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How can I obtain a copy of the Financial Institutions Act 1995?
 
Copies of the Act can be purchased from Parliament Office.
 
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If I have a problem with one of your local banks could I direct my concern to the Bank of Guyana?
 
Yes, provided every attempt has been made to resolve the problem with the bank.
 
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What is the position with Globe Trust Investment Company Limited (GTICL)?

On October 18, 2008, the Court ordered the liquidation of Globe Trust, following which Mr. Nizam Ali was appointed as the Liquidator by the Bank of Guyana.

Distribution of funds to depositors and trustors was made by the Liquidator in accordance with section 55 of the Financial Institutions Act 1995 (FIA). 

The unclaimed funds have been transferred to the Bank of Guyana where distribution will continue with effect from May 2011.

Subsequently, unclaimed funds shall be dealt with in accordance with section 57 of the FIA.

Licensing of cambios

Who can apply?
 
What to do?
 
How often should the license be renewed?
 
What about reporting requirements?
 
How are the cambios supervised?
 
What is the objective of the examination?
 
 
Who can apply?
 
The general public can apply
 
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What to do?
 
Submit a written application addressed to the Governor of the Bank of Guyana, which is forwarded to the International Department for processing.
 
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How often should the license be renewed?
 
Each calendar year after inspection of the cambio and submission of renewal application.
 
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What about reporting requirements?
 
The licensed cambio is required to submit information to the Bank of Guyana on forms IV, 5, 6, 7 and 8.
 
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How are the cambios supervised?
 
Section 16 of Dealers in Foreign Currency Act No 19 of 1989, authorizes the Bank of Guyana to conduct an examination of the cambios. Officers from the International Department would inspect the records maintained by cambios to ensure compliance with regulations.
 
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What is the objective of the examination?

To check for compliance according to the Act.
 
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Government Treasury Bills Questions

What are Government of Guyana Treasury Bills?
 
Who can purchase Treasury Bills?
 
What are maturity periods or terms for Treasury Bills?
 
How does the public know when Treasury Bills are being issued?
 
How are Treasury Bills purchased?
 
 
What are Government of Guyana Treasury Bills?
 
Treasury Bills are debt instruments issued by the Bank of Guyana acting as agent for the Government of Guyana.
 
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Who can purchase Treasury Bills?
 
Individuals, Financial Institutions, Companies.
 
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What are maturity periods or terms for Treasury Bills?
 
In Guyana, Treasury Bills are currently issued for maturity periods/terms of 91-days, 182-days and 364-days.
 
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How does the public know when Treasury Bills are being issued?
 
Weekly notices are normally placed in the daily newspapers and on the Bank’s website.

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How are Treasury Bills purchased?
 
Treasury Bills are purchased by tendering in response to the weekly notices, which are ‘Invitations to Tender,’ the terms and conditions of which are outlined in our website.
 
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Disclaimer

The information on this website does not constitute legal, financial or other professional advice but provides information for general reference purposes only. Every effort is made to ensure that the information given herein is of sound quality but no legal responsibility is accepted for any errors, omissions or misleading statements in the information, caused by negligence or otherwise.