Terrorist Financing Regulations in Costa Rica: A Complex Web of Rules

In an effort to prevent and combat money laundering and terrorist financing, Costa Rica has established a comprehensive set of regulations governing the country’s financial entities. The Superintendency for Financial Entities (SUGEF) is responsible for enforcing these rules, which cover a wide range of activities and transactions.

Key Regulations in Force

Linked Group Registration

All financial groups operating in Costa Rica must be registered with SUGEF, ensuring transparency and accountability throughout the chain.

Formation of Economic Interest Groups

Financial entities can form economic interest groups to share resources and expertise, but these arrangements must be approved by SUGEF to ensure compliance with anti-money laundering regulations.

Loans to Affected Parties

Private banks are authorized to grant loans to individuals or companies affected by specific provisions of the Organic Law of the National Banking System, subject to SUGEF’s approval.

Authorization Requirements

Authorization for Constitution and Start of Activities

The authorization and registration of a new financial entity require SUGEF’s approval to ensure compliance with anti-money laundering regulations.

Authorization for Merger of Financial Intermediaries

The merger of financial intermediaries requires prior approval from SUGEF to ensure that the resulting entity complies with anti-money laundering regulations.

Authorization for Transformation of Corporate Purpose

Private banks and non-bank financial companies must obtain SUGEF’s authorization to transform their corporate purpose, ensuring compliance with anti-money laundering regulations.

Other Requirements

Registration of External Auditors

External auditors must be registered in the eligible auditors registry to perform audits for financial entities supervised by SUGEF.

Appointment of External Auditors

Financial entities must appoint external auditors who are registered in the eligible auditors registry maintained by SUGEF.

Provision of Custody Services

The provision of custody services by financial entities requires SUGEF’s authorization to ensure compliance with anti-money laundering regulations.

Changes and Modifications

Capital Stock Variations

Changes in the capital stock amount of entities supervised by SUGEF require prior authorization to ensure compliance with anti-money laundering regulations.

Modification of Bylaws

Savings and credit cooperative organizations must obtain SUGEF’s authorization to modify their bylaws, ensuring that these changes do not compromise the organization’s stability or risk management practices.

Voluntary Actions

Voluntary Cessation of Financial Intermediation Activities

Financial entities must notify SUGEF before voluntarily ceasing financial intermediation activities, ensuring transparency and accountability throughout the chain.

Change of Name

Financial entities can change their name subject to prior approval from SUGEF to ensure that the new name does not compromise the entity’s stability or risk management practices.