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Honduras Sees Significant Progress in Banking Security Measures

In recent years, Honduras has undergone a remarkable transformation in its banking landscape due to the integration of emerging technologies.

Emergence of Non-Banking Electronic Money Institutions (INDELs) and Electronic Payment Service Provider Entities (EPSPE)

The adoption of electronic money and wallets has led to the emergence of specialized companies known as INDELs and EPSPE. These entities provide a range of services, including:

  • Fund transfers
  • Activation of electronic wallets
  • Conversion of physical Lempira to electronic money
  • Balance inquiry
  • Transaction history

Regulation and Oversight

According to the National Banking and Insurance Commission (CNBS), INDELs are authorized by the Central Bank of Honduras (BCH) to provide electronic money and offer electronic fund transfers and payment operations for goods or services. To establish an INDEL, it is required to be a corporation with a minimum capital of one hundred thousand Lempiras (L 100,000.00).

Security Measures

Both INDELs and EPSPEs must comply with provisions that ensure the security and traceability of transactions, including:

  • Implementation of authentication mechanisms
  • Identity verification
  • Maintenance of updated records

Regulatory Framework

In 2022, two key regulations were introduced:

  • The “Regulation for Payment and Transfer Services through Electronic Money”
  • The “Regulation for Services offered by Electronic Payment Service Provider Entities”

These regulations provide a clear framework for understanding the regulation of these institutions and entities in Honduras.

Impact on Financial System

The transformation of the Honduran financial landscape has been remarkable thanks to the introduction and regulation of INDELs and EPSPE. The implementation and regulation of these entities have significantly contributed to the modernization and efficiency of the financial system in Honduras, providing users with more flexible and convenient options while establishing essential measures to ensure the safety and transparency of all electronic transactions.

Conclusion

The implementation and regulation of INDELs and EPSPE have marked a crucial milestone towards the integrity of the financial system in Honduras. The clear legal framework established for these entities has promoted transparency and security in electronic transactions, consolidating trust in the country’s financial environment.