Financial Crime World

Title: New Composition of Nicaragua’s Anti-Money Laundering Council: Strengthening the Fight Against Financial Crimes

Changes to Nicaragua’s Anti-Money Laundering Landscape

Nicaragua’s anti-money laundering (AML) landscape underwent significant transformations following the recent restructuring of the National Council for Anti-Money Laundering Council, against Financing of Terrorism and against Financing of the Proliferation of Weapons of Mass Destruction (CNCAMLC-CT-FPWMD). Below are the details regarding these changes.

New Regulations in Law No. 1201

The amended Law No. 977, dealing with Money Laundering, Financing of Terrorism, and Financing of the Proliferation of Weapons of Mass Destruction (ML/FT/FP), revised the Council’s configuration to enhance its ability to effectively counteract these illegal acts. The new regulations, published on April 26, 2024, took immediate effect.

Council’s Expanded Membership

The Council, initially established to oversee AML/CFT risks, propose, and coordinate public policies and national strategies, is now bolstered by the inclusion of new members:

  • General Coordinator: Director of the Financial Analysis Unit (UAIF)
  • Coordinating Council:
    • Director of the UAIF
    • Superintendent of Banks and Other Financial Institutions
    • General Prosecutor of the Republic
    • President of the Central Bank of Nicaragua
    • Minister of Finance and Public Credit
    • General Controller of the Republic
  • Members:
    • General Director of the National Police
    • Minister Advisor to the President of the Republic for Security Affairs
    • Vice Minister of the Interior

These new additions aim to create a more comprehensive and coordinated approach towards combating financial crimes.

Roles and Responsibilities

  • General Coordinator: The Director of the UAIF will oversee and manage the day-to-day administrative and technical aspects of the organization.
  • Coordinating Council: This council shapes public policies and strategies to counteract ML/FT/FP.
  • Members: Crucial figures from the country’s security sector contribute to the council, fostering a collaborative initiative against financial crimes.
  • Technical Secretary: The Director of the Financial Analysis Unit fulfills the role of the Technical Secretary, authorized to summon institutions as needed.

Conclusion

The revamped CNCAMLC-CT-FPWMD is now geared towards handling the evolving nature of financial crimes in Nicaragua, ensuring improved cohesion and collaboration among the relevant agencies and entities.