Financial Crime World

Costa Rica Cracks Down on Anti-Money Laundering Regulations

The Superintendencia General del Sistema Financiero (SUGEF), Costa Rica’s financial regulator, has implemented a comprehensive set of regulations aimed at combating money laundering and ensuring the integrity of the country’s financial system.

Key Regulatory Requirements

These 28 key regulatory requirements are essential for all financial entities to adhere to:

Linked Group Registration

  • Financial entities must register their linked groups with SUGEF.
  • This ensures transparency in relationships between affiliated companies.

Formation of Economic Interest Groups

  • Companies must follow specific procedures when forming economic interest groups.
  • This helps prevent the misuse of these structures for illicit activities.

Approval for Private Banks to Grant Loans

  • Private banks need approval from SUGEF before granting loans to individuals affected by article 117 of the Organic Law of the National Banking System.
  • This ensures that private banks operate within the bounds of the law and do not engage in risky lending practices.

Authorization and Registration of Trusts

  • Financial entities require authorization and registration from SUGEF before setting up trusts similar to investment, pension, or capitalization funds.
  • This prevents the misuse of trusts for money laundering and other illicit activities.

Ongoing Requirements

The following requirements are ongoing and must be met by financial entities:

Appointment of External Auditors

  • Financial entities must appoint external auditors who are registered with SUGEF.
  • These auditors will help ensure the accuracy and transparency of financial statements.

Registration in the Registry of Eligible External Auditors

  • External auditors must register with SUGEF before auditing financial entities.
  • This ensures that only qualified auditors are engaged to conduct audits.

Authorization to Modify Bylaws

  • Savings and credit cooperative organizations need authorization from SUGEF to modify their bylaws.
  • This helps maintain the integrity of these organizations and prevents them from engaging in illicit activities.

Additional Requirements

The following requirements are additional measures to ensure transparency and accountability within Costa Rica’s financial system:

Information on Debtors

  • Financial entities must provide information on debtors to SUGEF.
  • This helps track down individuals or companies involved in money laundering activities.

Custody Service

  • Financial institutions offering custody services must comply with specific regulations.
  • These regulations ensure that these services are provided securely and transparently.

Deferral of Loan Portfolio Estimates

  • SUGEF may grant extensions for recording loan portfolio estimates.
  • This helps financial entities meet the deadline without compromising their financial reporting.

These regulations aim to enhance transparency, accountability, and integrity within Costa Rica’s financial system, ultimately contributing to a safer environment for both domestic and international investors. As the country continues to attract foreign investment and develop its financial sector, these anti-money laundering policies will play a crucial role in maintaining the trust of stakeholders and upholding the country’s reputation as a secure and reliable destination for financial activities.