Financial Crime World

Fintech Growth in Honduras Brings Compliance Challenges

Tegucigalpa, Honduras

Fintech Industry Booms in Honduras

The fintech industry has experienced significant growth in recent years in Honduras, transforming the traditional way of doing business and increasing competition. However, with this growth comes new regulatory risks that must be addressed to protect financial consumers.

Government Regulations Emerge to Oversee Fintech Sector

In response to the rapid growth of the fintech sector, the Honduran government has taken steps to regulate the industry. Key regulations include:

  • Regulation for the Authorization and Operation of Non-Banking Institutions that Provide Payment Services Using Electronic Money: Issued in 2016, this regulation regulates the authorization and operation of private and public non-banking institutions that carry out transfers and payment transactions using electronic money.
  • Legislative Decree No. 83-2021: Published in 2021, this decree aims to regulate the organization, operation, and functioning of domestic and foreign legal entities that provide payment and transfer services to residents in Honduras. Entities must obtain authorization from the Central Bank of Honduras (BCH) or register with a designated registry, subjecting them to supervision by the BCH and the National Banking and Insurance Commission.
  • Regulations for Payment and Transfer Services Using Electronic Money: Issued by the Central Bank of Honduras, this regulation governs the organization, operation, and functioning of legal entities providing payment and transfer services using electronic money.
  • Regulations for Services Offered by Electronic Payment Service Providers: Also issued by the Central Bank of Honduras, this regulation governs the activities of domestic and foreign entities offering electronic payment and transfer services through technological platforms.

Experts Weigh In on Regulatory Efforts

According to Vanessa Oquelí, Managing Partner at García & Bodán in Honduras, these regulations aim to promote financial inclusion and stability while protecting users. “The Honduran government’s efforts to regulate the fintech sector demonstrate its commitment to safeguarding financial consumers,” she said.

By addressing regulatory risks and promoting a secure environment for fintech innovation, the Honduran government is poised to support the continued growth of the industry and improve the lives of citizens across the country.