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Dramatic Increase in Suspicious Financial Transactions in Nicaragua

Article Summary:

As Nicaraguan banks begin to take actions to combat money laundering, banking supervisory authorities have seen a dramatic increase in suspicious financial transactions. According to government figures in 2002 there were three reports of suspicion, while in 2010 there were 368.

Photo Credit: El Nuevo Diario

Original Article Text From El Nuevo Diario:

Increase reporting of suspicious transactions

Suspicious Activity Reports, ROS, recorded a substantial increase in the country between 2002 and 2010, according to the most current data from the Superintendency of Banks and Other Financial Institutions Siboif.

According to the company, in 2002 there were three ROS, while in 2010 there were 368.

While the Cash Transaction Reports, RTE, June 2008 to February 2011 increased from 257.535 to 369.465. When asked about the Superintendent of Banks, Victor Urcuyo said he did not want to talk about this time claiming that “everything is misrepresented in the media.”

According to the expert on money laundering, Alejandro Aguilar, Dean of the Faculty of Law, American University, UAM, the increase in ROS is the product of effectiveness that are winning, to the extent that they strengthening systems to prevent money laundering.

Exemplified in Nicaragua linked to the subject standards became effective in 2002, and has since been improved. “In 2008 there was a more rigorous reform, and new entities are added to the system of prevention,” he said.

Preparation of financial institutions influences

“What happens? – Added – financial institutions begin to hire specialized personnel in prevention, the staff begins to train other personnel of the entity, you begin to design the system to prevent the organization, policies and manuals risk prevention and improves the sensitivity of managers throughout the organization, etc “.

On the other hand, explained that the banking supervisory authorities began to enhance its control, supervision and punishment. “In short, is a natural process of going from zero registration and bad practices, to a stage of registration, to reach an optimal level of financial prudence … on the other hand, there is a natural growth of the economy and with it economic transactions Therefore, significant growth is normal reports of suspicious transactions, “he said.

Meanwhile, the chairman of the Committee on Production, Economics and Parliament’s budget, Wálmaro Gutierrez, said the reports described trend is a result of the implementation of all measures being taken in the context of combating laundering money.

“In other words what I mean is that from that time began and now there are two hundred-odd, the thing is that so far there are mechanisms to detect it early,” he said.

The role of the Committee on Financial Analysis

For the expert on money laundering, Alejandro Aguilar, Dean of the Faculty of Law, American University, UAM, the Committee on Financial Analysis, CAF, since its inception has always been an instance of “institutional coordination” rather than a “autonomous entity with its own capacity.”

Therefore, “as it was designed never would have had the ability to process and analyze reports (Suspicious transaction) in accordance with international standards and typologies of money to rebuild or develop conclusive reports or feedback system prevention. ”

“This explains – he said – the reason I always CFATF noted this deficiency to Nicaragua in its assessment reports. In fact, there is no news of any criminal penalty for money laundering, which has been imposed on a defendant as a result of the analysis of ROS and RTE in theory was supposed to make the CAF. ”

“There are effective systems in preventing money laundering”

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From El Nuevo Diario via Google Translate

Latin America Investment News on Viva Tropical