Honduras Strengthens Financial Privacy and Due Process Rights with New Anti-Money Laundering Regulations
The Honduran Congress has recently made significant amendments to the Penal Code, Criminal Procedure Code, and Special Law Against Money Laundering, enhancing the financial privacy and due process rights of financial users.
Enhanced Judicial Oversight
The changes, effective since October 2021, require judicial authorization for public authorities to access a person’s financial records. This means that the Public Ministry (Prosecutor’s Office) and Financial Intelligence Unit (FIU) can only obtain financial information from financial institutions by obtaining a prior court order.
Limitations on Access
The amendments clearly establish that the right to banking secrecy can only be suspended after a judicial warrant has been secured, and for the exclusive purpose of investigating crimes related to:
- Money laundering
- Financing of terrorism
- Civil asset forfeiture cases
Strengthening Banking Secrecy and Financial Privacy
Honduras’ new regulations have strengthened its position as one of the countries with the highest protection for banking secrecy and financial privacy. The changes are in line with international human rights law standards, which recognize the right to privacy and due process.
Historical Context
In 2010 and 2014, Honduras enacted laws that allowed public authorities to access a person’s financial records without judicial authorization. However, these laws were deemed unconstitutional by many experts. The recent amendments have rectified this issue by requiring judicial oversight before accessing financial information.
Clear Guidelines for Financial Institutions
The Criminal Procedure Code has also been amended to clearly state that financial institutions can only provide financial information if accompanied by a judicial warrant. This ensures that financial users’ rights are respected and protected from unwarranted invasions of their privacy.
Positive Impact
Honduras’ decision to strengthen its anti-money laundering regulations is seen as a significant step towards protecting the fundamental rights of individuals and ensuring greater transparency in financial transactions. The country’s commitment to upholding human rights standards will likely have a positive impact on its international reputation and economic relationships.