Financial Crime World

Strengthening Fight Against Money Laundering and Terrorist Financing in Guatemala

Guatemala City, November 28, 2001

The Guatemalan Congress has passed a new law aimed at strengthening the fight against money laundering and terrorist financing. The Special Verification Intendance (SVI) will play a crucial role in this effort, and its cooperation with other authorities is essential to fulfill its duties.

Cooperation Required

Administrative Assistance

  • The Public Ministry, SVI, and other competent authorities may provide and request administrative assistance from each other, as well as from foreign authorities, to facilitate the implementation of this law.
  • This cooperation will enable the sharing of information, resources, and expertise to combat money laundering and terrorist financing.

Confidentiality

  • To ensure the confidentiality of financial operations, personnel of SVI and any person with knowledge or access to sensitive information are obligated to maintain secrecy, even after their duties have ceased.
  • This is a critical measure to prevent the misuse of confidential data.

Fines and Training

  • Fines imposed for non-compliance with this law will be allocated 50% to SVI for training personnel in anti-money laundering measures, while the remaining 50% will increase the budget of the Superintendency of Banking.

Leadership of SVI

Intendent

  • The Intendant of SVI will head the organization and will be staffed as necessary.
  • The Intendant must meet certain requirements, including:
    • Being a Guatemalan citizen
    • Having recognized honesty and professional ability
    • Being an accredited professional in a relevant field

Ineligibility

  • Certain individuals are ineligible to become Intendent of SVI, including:
    • Leaders of political or business organizations
    • Ministers of cults or religions
    • Blood relatives of the President or Vice-President of the Republic

Designation and Temporary Substitution

  • The Intendant will be designated by the Monetary Board, in proposal from the Bank Superintendent.
  • In cases of temporary absence, a substitute will be appointed by the Bank Superintendent.

Right to Prior Confirmation of Indictment

  • Criminal procedures cannot be initiated against the Bank Superintendent or Intendent of SVI without prior confirmation of an indictment by the Supreme Court of Justice.

Final Dispositions

  • The regulations of this law must be elaborated by the Banking Superintendency, through SVI, within 60 days of its approval.
  • The regulations will take effect within 90 days of the law’s entry into force.
  • SVI will begin its operations within 180 days of the law’s effective date.

Prevalence and Derogation

  • The dispositions of this law prevail over any prior or subsequent legislation related to this subject, unless specifically stricken.
  • Decree number 51-2001 is hereby derogated.

Enforcement

  • This decree will take effect on the day of its publication in the Official Daily.