Guatemalan Tax Authority Requests Bank Information to Combat Financial Crimes

The Guatemalan Superintendency of Taxes (SAT) has announced that it may request information from banks regarding local and foreign accounts, transactions, investments, assets, and other operations carried out by individuals or entities whenever there is reasonable doubt about activities that may merit investigation. This move aims to combat financial crimes and ensure compliance with tax laws.

Request for Information

According to the SAT, requests for information must be authorized by a judge and are subject to the guarantees of confidentiality established by the Constitution. The Tax Code outlines a procedure and requirements for such requests.

• Requests for information must be authorized by a judge
• Subject to the guarantees of confidentiality established by the Constitution
• Procedure and requirements outlined in the Tax Code

Prudential Regime: Capital, Liquidity, and Risk Control Requirements

The Guatemalan banking system is subject to a prudential regime designed to ensure the stability of financial institutions. The regime sets out capital, liquidity, and risk control requirements that banks must maintain.

Capital Requirement

• Banks are required to hold a minimum amount of patrimony in relation to their exposure to risks
• The minimum amount may not be lower than 10% of their assets and contingencies
• Regulation on the calculation of this requirement based on international best practices

Insolvency, Recovery, and Resolution: Legal and Regulatory Framework

The Banks and Financial Groups Act sets out a legal framework for the resolution and suspension of failing banks.

Regularisation Plan

• When a bank has patrimonial deficiency, it must notify the SIB and present a regularisation plan for its approval
• The plan may include measures such as:
  • Reducing assets or contingencies
  • Capitalizing reserves
  • Increasing authorized capital
  • Paying creditors with shares
  • Contracting subordinated credits
  • Selling shares or assets

Consequences of Bank Suspension

A bank suspension entails several consequences, including:

• Suspension of all judicial procedures against the bank
• Inability to contract new obligations
• Suspension of interest accrual on the bank’s debts