Financial Crime World

Costa Rica Toughens Up on Money Laundering Laws

San Jose, Costa Rica - In a bid to combat money laundering and terrorist financing in the country, Costa Rica’s Superintendencia General de Entidades Financieras (SUGEF) has introduced a series of regulations for financial entities under its supervision.

Key Provisions

  • Linked Groups Registration: Linked groups are now required to register with SUGEF.
  • Private Bank Loan Approvals: Private banks must obtain approval from SUGEF before granting loans to individuals affected by certain provisions.
  • Trust Registration: Trusts similar to investment funds must be registered with SUGEF.
  • External Auditor Requirements: External auditors must be appointed and registered in a special registry.

Additional Regulations

  • Authorization for modifications to the bylaws of savings and credit cooperatives
  • Participation in the foreign exchange market under an exchange house modality
  • Information on debtors within the national financial system
  • Provision of custody services
  • Deferment of recording loan portfolio estimates at SUGEF’s request
  • Update of capital stock amounts

Extensions and Resolutions

  • Extensions for submitting accounting information
  • Resolution of conflicts between audited entities
  • Provision of information to public inquiries
  • Authorization for the constitution and start of financial intermediation activities
  • Approval for mergers and transformations

Changes in Name, Activities, or Group Companies

  • Changes in name require SUGEF’s approval.
  • Voluntary cessation of financial intermediation activities requires SUGEF’s approval.
  • Separation or dissolution of group companies or financial conglomerates requires SUGEF’s approval.

Compliance and Penalties

Financial entities must comply with these regulations to avoid penalties and maintain their licenses. SUGEF will closely monitor compliance and take action against any entities that fail to meet the requirements. The new regulations aim to strengthen Costa Rica’s anti-money laundering framework and protect its financial system from illicit activities.