Financial Institutions Urged to Heighten Security Measures Amid Concerns Over Nicaragua’s Corrupt Regime
The Financial Crimes Enforcement Network (FinCEN) has issued an alert to US financial institutions, warning them of the increasing risk that corrupt officials from Nicaragua may attempt to move illicit funds into or through the US financial system. The advisory comes as the regime of President Daniel Ortega faces growing unrest and potential sanctions.
Background
According to FinCEN, senior foreign political figures connected to Ortega’s regime may react to perceived threats by moving assets out of their accounts in Nicaragua or elsewhere. These assets could include:
- The proceeds of corruption
- Human rights abuses
These assets may be laundered through the US financial system.
Call to Action
“We urge financial institutions to remain vigilant and report any suspicious activity related to corruption or human rights abuses in Nicaragua,” said Sigal Mandelker, Under Secretary of the Treasury for Terrorism and Financial Intelligence.
FinCEN Director Kenneth A. Blanco emphasized that the Ortega regime is known for its oppressive and corrupt conduct, which has led to widespread human rights abuses and the illicit enrichment of regime insiders. “Given this context, we anticipate that officials connected to the regime may attempt to move corruption-related assets out of Nicaragua,” he said.
Recent Actions
The advisory coincides with recent Treasury actions against Nicaraguan officials involved in corruption and human rights abuse. The Office of Foreign Assets Control (OFAC) has designated four senior officials under the Global Magnitsky authority, highlighting their roles in corrupt and violent acts.
Reporting Requirements
FinCEN is reminding financial institutions to file Suspicious Activity Reports (SARs) when they identify potential misuse of Nicaraguan public funds or proceeds of political corruption associated with senior foreign political figures connected to Ortega’s regime. The agency also recommends referencing the advisory by including the key term “Nicaragua FIN-2018-A005” in SAR narratives and fields.
Important Note
The advisory does not address transactions involving ordinary Nicaraguan citizens, who may seek to move assets due to political unrest. Instead, it focuses on preventing corrupt officials from exploiting the US financial system.