Guatemala’s Banking Compliance Regulations: A Stable and Regulated System
Despite recent global economic challenges, Guatemala’s banking system remains stable and well-regulated. According to data from the Superintendence of Banks (SIB), the country’s 18 commercial banks had a total of $63.8 billion in assets as of April 2023.
Regulatory Framework
The SIB is responsible for regulating the financial services industry, working closely with the Guatemalan Congress to draft laws that effectively regulate the business and financial sectors. In recent years, the Guatemalan Congress has approved several reforms aimed at strengthening supervision and prudential regulation of the financial sector.
- Reforms to the Banking and Financial Groups Law and the Central Bank Organic Law were passed in August 2012, establishing resolution mechanisms for failed or failing banks.
- Guatemala has also implemented anti-money laundering legislation and terrorism finance laws, earning recognition from the Financial Action Task Force (FATF) for its efforts to improve its financial regulatory framework.
Areas for Improvement
Despite these efforts, there are still some areas where the banking system could be improved. The Guatemalan government has proposed amendments to the Banking and Financial Groups Law and an anti-money laundering and counter-terrorism financing draft law, which were pending congressional approval as of June 2023.
Open Exchange Regime
Guatemala maintains an open and unrestricted exchange regime, allowing investors to convert or transfer funds associated with their investments into a freely usable currency at a market-clearing rate. The country’s exchange rate is determined by market conditions, and the Central Bank intervenes only to prevent sharp movements.
- There are no legal constraints on the quantity of remittances or capital flows.
- Since May 2001, banks have been permitted to offer accounts and conduct business in any foreign currency.
U.S. Banks with Operations in Guatemala
Citibank N.A., Guatemala Branch has maintained operations in Guatemala since 1990. Local banking institutions include the Superintendence of Banks (SIB) and other financial institutions regulated by the agency.
- For more information on payment methods or trade finance options, investors can consult the Trade Finance Guide.
- The U.S. Department of State Investment Climate Statement website also provides valuable insights into Guatemala’s financing options and regulations.