SAT Requests Bank Information to Combat Tax Evasion

The Superintendency of Taxes (SAT) has the authority to request information from banks regarding local and foreign bank accounts, transactions, investments, assets, and other operations carried out by individuals or entities. This power is exercised whenever there is reasonable doubt about activities that may warrant investigation, provided such information is requested for tax purposes and under the guarantees of confidentiality established by the Constitution.

Obtaining Court Orders

To exercise this authority, SAT must obtain a court order authorizing the request. The Tax Code outlines a procedure and requirements for obtaining such an order, which includes filing a petition with the court and demonstrating a legitimate reason for requesting the information.

• If a judge denies the request, SAT can appeal the decision.
• Banks that fail to comply with a valid court order to provide information are subject to criminal penalties for resisting tax supervision.

Prudential Regime for Banks

The prudential regime for Guatemalan banks aims to ensure their stability and solvency by setting minimum requirements for capital, liquidity, and risk control. The Monetary Board is responsible for issuing general regulations that banks must follow.

Capital and Liquidity Requirements

Banks must maintain a minimum amount of patrimony in relation to their exposure to risks, which may not be lower than 10% of the assets and contingencies considered according to the risks under the Monetary Board’s regulations. This amount is calculated as the sum of primary capital plus complementary capital, minus stock investments in financial companies when they represent at least 25% of the bank’s capital.

• Primary capital includes:
  • Paid-in capital
  • Legal reserve
  • Permanent reserves from retained profits
  • Other permanent capital contributions
  • State contributions for state-owned banks
• Complementary capital includes:
  • Profits from the current period
  • Profits from previous periods
  • Surplus from asset revaluation up to 50% of primary capital
  • Other capital reserves
  • Debt instruments convertible to stock
  • Subordinate debt for more than five years
  • Bonds combining characteristics of debt and capital

Insolvency, Recovery, and Resolution

The Banks and Financial Groups Act governs the resolution and suspension of failing banks. When a bank has patrimonial deficiency, it must notify the Superintendency of Banks (SIB) and present a regularisation plan for its approval.

• The plan may include measures such as:
  • Reducing assets or contingencies
  • Capitalizing reserves
  • Increasing authorized capital
  • Selling shares to cover patrimonial deficiencies
  • Contracting subordinated credits
• The SIB may approve, reject, or amend the bank’s proposal.
• If a bank is subject to a regularisation plan, it must not:
  • Pay dividends
  • Grant loans to its shareholders
  • Open new agencies without prior approval from the SIB

Consequences of Non-Compliance

Banks that fail to comply with their regularisation plans may be subject to suspension of operations by the Monetary Board. A bank suspension entails significant effects, including:

• The suspension of all judicial procedures against the bank
• The inability to contract new obligations