Treasury Regulation: Board Members and Managers’ Remuneration

The Guatemalan government has introduced a new regulation aimed at ensuring transparency in the remuneration and bonuses paid to board members and managers of banks. This rule is designed to promote a culture of transparency and accountability within the banking sector.

Remuneration Limitations

According to the regulation, the total amount of remuneration and bonuses paid during an accounting period cannot exceed 50% of the same total calculated over data from the preceding accounting period. If this percentage is surpassed, the bank must justify it before the Fund’s technical committee, which may consider it reasonable.

AML/KYC Requirements

The Guatemalan government has implemented regulations aimed at preventing money laundering and financing of terrorism. These regulations require banks and other financial institutions to adopt programs, rules, procedures, and controls to prevent the misuse of their products and services in these activities.

• Procedures to ensure a high level of integrity in personnel and knowledge of personal, employment, and patrimonial background of employees
• Permanent training for personnel on responsibilities and obligations derived from anti-money laundering laws
• Establishment of an audit mechanism to verify compliance with programs and rules
• Formulation and implementation of specific measures to know and identify clients

Depositor Protection

The Guatemalan government has established a Fund for Protection of Savings (FOPA) to guarantee depositors in the banking system the recovery of their deposits up to GTQ20,000 (approximately USD2,500). The scheme is administered by the Bank of Guatemala and funded through mandatory monthly contributions from Guatemalan banks and branches of foreign banks.

Bank Secrecy

The Guatemalan government has implemented regulations aimed at protecting bank secrecy. These regulations prohibit directors, managers, legal representatives, and employees of banks from disclosing information about their clients without a court order or other legal authorization.

• Violations of banking confidentiality are considered grave offenses, entailing the immediate removal of those participating in it, as well as civil and criminal liabilities

Prudential Regime

The Guatemalan government has implemented regulations aimed at ensuring the stability and soundness of banks. These regulations require banks to maintain a minimum amount of patrimony in relation to their exposure to risks, which may not be lower than 10% of their assets and contingencies.

• Banks are also required to maintain liquidity risk management systems and submit regular reports to the Monetary Board
• The regulation aims to promote a culture of transparency and accountability within the banking sector