GUATEMALA TIGHTENS SCREWS ON MONEY LAUNDERING: FOREIGNERS FACE BANKING HURDLES

Guatemala has implemented stringent measures to combat money laundering, making it increasingly difficult for foreigners to open bank accounts and conduct basic financial transactions in the country. This shift has led to a complex banking landscape, leaving many non-resident individuals struggling to navigate the system.

Banking Landscape in Guatemala

Overview of Banks in Guatemala

Guatemala is home to 18 commercial banks - public or private - with assets managed at USD 37.3 billion. The Bank of Guatemala, controlled by the government, issues the national monetary unit, the quetzal, and oversees the country’s financial and banking system.

Challenges for Foreigners

Opening a bank account in Guatemala has become a daunting task for non-resident foreigners. Banks have implemented varying policies, with some refusing to deal with foreigners altogether. Others require sponsorship from a Guatemalan national or resident, while some offer limited services such as ATM and debit cards without cheque books or overdraft facilities.

To open an account, foreigners typically need their passport and proof of address in Guatemala, which can be obtained by showing the electrical bill of their accommodation. In some cases, a reference letter from their home country bank and/or local sponsor may also be required.

Obstacles to Credit

Obtaining credit or a mortgage loan as a non-resident is even more challenging. Even after obtaining resident status, individuals will likely need a third-party guarantor to access credit.

Important Considerations for Foreigners

• Physical Presence: Foreigners must be physically present in Guatemala to open an account.
• Processing Time: The processing time for opening a bank account is approximately three days.