Honduras Strengthens Banking Regulations to Combat Financial Crime
Protecting Financial Privacy and Due Process Rights
In a significant move to safeguard the privacy and due process rights of financial users, Honduras’ Congress has recently amended its Penal Code, Criminal Procedure Code, and Special Law Against Money Laundering. The amendments require judicial authorization for public authorities to access a person’s financial records, ensuring that only court-ordered warrants can be used to obtain sensitive information.
New Requirements for Financial Institutions
Under the revised laws, the Public Ministry (Prosecutor’s Office) and Financial Intelligence Unit (FIU) can now request financial institutions to provide them with users’ financial records only by obtaining a prior court order. Additionally, the amendments stipulate that a person’s right to banking secrecy can be suspended only after a judicial warrant has been secured and for the exclusive purpose of investigating crimes related to:
- Money laundering
- Financing of terrorism
- Civil asset forfeiture cases
Constitutional and International Framework
The Honduran Constitution recognizes the right to privacy in articles 76 and 100, as do international human rights instruments such as:
- Universal Declaration of Human Rights
- International Covenant on Civil and Political Rights
- American Convention on Human Rights
- American Declaration of the Rights and Duties of Man
The Commercial Code of Honduras also enshrines the right to bank secrecy in article 956.
Previous Laws Compromised Financial Privacy
However, previous laws had allowed financial institutions to release information without a court order, compromising financial privacy. The amended laws now bring Honduras in line with international standards for due process, ensuring that any invasion into the human right to financial privacy is done under strict necessity and in accordance with the law.
Significant Step Forward
The amendments have been hailed as a significant step forward in protecting banking secrecy and financial privacy in Honduras. With the new regulations, financial institutions are obligated to provide requested financial information only if accompanied by a judicial warrant signed by a competent judge. The Criminal Procedure Code has also been revised to explicitly state that financial institutions can only provide financial information with a court-ordered request.
Major Victory for Privacy Advocates
The move is seen as a major victory for privacy advocates and a significant step towards ensuring the protection of individuals’ financial data in Honduras. By requiring judicial authorization, the amended laws ensure that public authorities are held accountable for any invasion into private financial records, upholding the principles of due process and human rights.