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Nicaraguan Financial Information Act Concerns Employers

Article Summary:

A bill that would infringe on the privacy of information relating to citizens and businesses of Nicaragua has risen alarms in the Superior Council of Private Enterprise. The major concern: the proposed law gives no clear list of subjects who will be required to provide financial information to the Financial Analysis Unit.

Photo Credit: Prensa Nicaragua

Original Article Text From Prensa Nicaragua via Google Translate :

UAF Would Have Excessive Power

The discretion to be the Financial Analysis Unit (UAF) for information on private citizens is a concern to the business sector, said yesterday Aguerri Adam Joseph, president of the Superior Council of Private Enterprise (COSEP).

He indicated that it is necessary to limit the excessive powers that have the UAF, as this will prevent affecting the constitutional rights of Nicaraguans who would be threatened if the opinion becomes law.

Aguerri said the second point is concerned is that there is no clear list of subjects that are required to provide financial information, which is as recommended by the Financial Action Task Force (CFATF).

COSEP president said it is necessary to define “exhaustively” who are “obligated” to report.

Aguerri said the business sector is clear that international standards are needed in the prevention of money laundering, drug-related issues and organized crime, however, it is necessary to achieve consensus on this bill.

He indicated that UAF is necessary for our country out of the gray list, where the CFATF (Financial Action Task Force Caribbean) is in Nicaragua “in fight against money laundering.”

The main discrepancies are in Articles 4, 9 and 10 of the opinion ( see graphics ).

Article four of powers, states that the UAF may “request and receive directly from public and private institutions or obligated” information from transactions or operations related to illegal activities.

At this point, Juan Carlos Arguello, president of the Association of Private Banks of Nicaragua (Asobanp), said that according to the CFATF, research must be born of Suspicious Transaction Reports (STRs) or Technical Reports Cash (TEN.)

Aguerri added that, according to the opinion, although there is no ROS, any person may be required, which violates the individual rights of citizens.

Another point not share the opinion of this law, said Aguerri, is Article 9 of the obligors, which leaves a minimum list but open. “What allows the UAF discretion include in this list to any individual or legal entity.”

“What we have told the government technical team is that this can not be a unit to investigate all Nicaraguans, but must investigate subjects in reports to produce a red flag,” said Aguerri.

Link to Original Article:

From Prensa Nicaragua

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