Financial Crime World

Fintech Regulations in Honduras: Key Aspects

Honduras’ fintech regulatory framework is constantly evolving. Understanding the current key aspects will help businesses navigate the market and ensure compliance.

Anti-Money Laundering (AML) and Sanctions Rules

While there are no specific AML reporting obligations for fintech regulation, the Money Laundering Prevention Law requires financial institutions to supply information and reports to AML authorities under certain conditions. This is crucial for businesses operating in Honduras’ fintech sector.

Fintech Players in Honduras

  • Payment Facilitators: Companies that enable individuals and merchants to make payments online.
  • Payment Gateways: Platforms that process transactions between banks and payment processors.
  • Bitcoin ATMs: Machines that allow users to exchange cash for Bitcoin or other cryptocurrencies.
  • Digital Banking: Online banking services that provide access to financial accounts.
  • Electronic Wallets: Digital wallets that store payment information and enable online transactions.
  • Payment Networks: Systems that connect merchants and banks for payment processing.
  • Cryptocurrencies: Digital currencies that use cryptography for secure transactions.
  • Alternative Lending: Non-traditional lending options, such as peer-to-peer lending.

Online Lenders

Supervised financial institutions must comply with prudential regulations as well as consumer protection regulations. Non-banking lenders (entities that do not perform financial intermediation) only have to comply with consumer protection regulations.

Payment Processors

Payment processors must use existing payment rails and may create or implement new payment rails prior to the authorization of the Honduran Central Bank.

Fund Administrators

Fund administrators are regulated depending on their activities by the Securities Market Law, which includes provisions for the incorporation of fund administrators and a framework for mutual guarantee funds.

Marketplaces, Exchanges, and Trading Platforms

Online marketplaces are permitted as long as they refer to general goods and services, not securities or currencies. The Central American Stock Exchange is the only exchange marketplace authorized for public offerings of securities.

Important: These regulations are subject to change, and it’s essential to consult with a legal expert to ensure compliance with the current regulatory framework in Honduras.