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Latin America Investment News on Viva Tropical

You need to Launder Money? Nicaragua Appears to be the Place to Do it.

Article Summary:

Nicaragua seems to show little concern when it comes to leaving the grey list of countries which it is easy to launder money. As laws state now, exchange houses, cooperatives, business real estate transactions, art dealers, gold sales, are the most prevalent economic sectors that are not required to report their financial transactions to the Nicaraguan Superintendency of Banks and Other Financial Institutions.

Photo Credit: La Prensa Nicaragua

Original Article Text From La Prensa Nicaragua via Google Translate :

Country Risk To Money Laundering

Inadequate called the dean of the Faculty of Law of American University (UAM), Alejandro Aguilar, the measures applied in Nicaragua to prevent money laundering.

Aguilar presented yesterday an investigation on the subject conducted by the Institute for Strategic Studies and Public Policy (IEEPP).

The expert criticized that in Nicaragua there has been no sign of concern that in October the country entered the so-called gray list of the FATF (Financial Action Task Force), which means risk to the international financial system.

The FATF is the international body that guides the technical recommendations to adopt a comprehensive system to combat money laundering and combating the financing of terrorism. In 1996, Nicaragua became a member of the Financial Action Task Force (CFATF), a regional body of the FATF.

They Are Not Obliged To Inform SIBOIF
Currently the exchange houses, cooperatives, business real estate buying and selling properties, art dealers or gold, are the economic sectors that are not required to report their transactions to the Superintendency of Banks and Other Financial Institutions (Siboif).

In the medium term the international community and the global financial system will look on those countries with strategic deficiencies, Aguilar said.

The consequences of this situation, the specialist compared them to a local bank would put a client that takes money that does not know from where.

And felt that the country not to advance in the prevention of washing medium term will be more expensive than the Nicaraguan banks are maintained as clients in international banking.

In the future, “this may increase the costs of financial transactions with Nicaragua,” said Aguilar.

The Attorney General of the Republic, Julio Centeno Gomez, admitted that the legal system of this country is not “very effective” to combat money laundering. “We have a very effective normative legal context,” said Centeno on Channel 23 television.

Aguilar said that in 2004 Nicaragua was first evaluated by the CFATF and at that time one of the weaknesses identified in the country was the absence of a Financial Analysis Unit (UAF), in accordance with international standards. It also specified that the Financial Analysis Commission (CAF), who heads the prosecution, not a real financial analysis unit. And although eight years was introduced in the National Assembly a draft law on the creation of this specialized unit is unknown reasons why it has not been created. So is not creating the Asset Management Unit engaged in organized crime, although there is a law and sends it to the Ministry of Finance and Public Credit.

Nicaragua joins Cuba as countries in Latin America that do not have this specialized unit.

In Nicaragua it is also said not to have effective customer and record keeping in particular by unregulated institutions, weakness in the reporting of suspicious transactions, the lack of oversight for the entire financial sector and adequate procedures to identify and freeze terrorist assets.

Link to Original Article:

From La Prensa Nicaragua

Latin America Investment News on Viva Tropical