Financial Crime World

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Guatemala: Fintech Regulation Under Scrutiny

Guatemala’s financial sector has been rocked by a recent scandal, leading to concerns over the institution’s reputation and financial stability. To address these concerns, authorities have taken measures to sanction those responsible for actions that have undermined the institution’s integrity.

Institutional Reputation Under Threat


The scandal has resulted in a massive withdrawal of deposits and investments, exceeding normal or ordinary flow. The consequences are far-reaching, with the institution’s reputation and financial stability now under scrutiny.

Penalties for Those Responsible


Those found guilty of undermining the institution’s integrity will face severe penalties, including:

  • Three years’ imprisonment
  • A fine of GTQ5,000-50,000

Fintech Regulation in Guatemala


Guatemala has a relatively underdeveloped regulatory framework. Notably:

  • There is no specific regulation for insurtech or regtech providers.
  • The use of blockchain in financial services is not applicable in the country.

Open Banking Ban


Guatemala’s legislation prohibits open banking, requiring banks and their employees to keep client information secret unless there is a legal or judicial order to disclose it. This means that there are no risks related to this topic at present.

Fraud Concerns


The regulators in Guatemala are focused on:

  • Source and transfer of funds
  • Identity fraud: key elements of financial services and fintech fraud

Consortium Legal is a specialized law firm that focuses exclusively on practice areas across Central America. The firm offers personalized, coordinated, and efficient service for regional matters, providing the highest level of technical excellence for its clients.