Aspects of Corporate Governance Regulations for CNBS-Supervised Institutions
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Aspects of Corporate Governance Regulations for CNBS-Supervised Institutions

On October 22, 2022, in the Official Gazette No. 36,057, the Corporate Governance Regulation for Supervised Institutions (hereinafter referred to as the Corporate Governance Regulation) was published, establishing an adaptation period of 8 months. During the adaptation period, we had the opportunity to advise banks, insurance companies, and other institutions supervised by the CNBS in…

Update on minimum capital requirements in Nicaragua´s financial institutions
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Update on minimum capital requirements in Nicaragua´s financial institutions

In February of this year, the Superintendence of Banks and Other Financial Institutions of Nicaragua (SIBOIF) published regulations updating the minimum capital requirements for the following financial institutions: The minimum capital requirement for financial institutions is initially outlined in the laws applicable to each institution and is updated every two years through prudential regulations published…

Bank guarantee vs. Commercial surety Bond in Honduras
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Bank guarantee vs. Commercial surety Bond in Honduras

In Honduras, and internationally, it is usual that, at the time of public or private bids, it is established as an unavoidable requirement the submission of one or more bonds or bank guarantees that serve, at least the main one, to ensure the performance of the guaranteed contract. In the Honduran legislation both figures are…

Protecting the right to informational self-determination in banking matters in Central America and the interpretative debate on its limits in Costa Rica.
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Protecting the right to informational self-determination in banking matters in Central America and the interpretative debate on its limits in Costa Rica.

I- Introduction In November 2022, the Central Bank of Costa Rica (“BCCR“) requested from the General Superintendence of Financial Institutions (“SUGEF“) access “to the integral information of all credit operations that the supervised financial intermediaries submit, including necessarily the identification number (physical, legal, dimex, or others), to the Information Management Division of the Central Bank…

Amendment to the Law for the Promotion and Regulation of Microfinance in Nicaragua

Amendment to the Law for the Promotion and Regulation of Microfinance in Nicaragua

On Tuesday, November 7, 2023, Law No. 769, Law for the Promotion and Regulation of Microfinance, approved on June 9, 2011, was first amended by Law No. 1,168, Law for the Amendment of Law No. 769, Law for the Promotion and Regulation of Microfinance, published in La Gaceta No. 201. The purpose of the amendment…

Whistleblower channels: characteristics and minimum requirements for proper functioning and recognition in Nicaragua
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Whistleblower channels: characteristics and minimum requirements for proper functioning and recognition in Nicaragua

Whistleblower channels are a mechanism to identify conflicts that may be occurring between parties related to the company (employees, customers, and suppliers) about illegal activities or behaviors that without proper treatment may become infractions. There are different types of reporting channels, so the company must implement the system that best suits its operations. These may…

Microfinance and financial inclusion in Nicaragua
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Microfinance and financial inclusion in Nicaragua

The World Bank indicates that financial inclusion refers to the access that people and companies have to various useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – and that are provided in a responsible and sustainable manner. Financial inclusion is considered as an element that…

Aspects on the implementation of the Electronic Payment Service Provider Entities (EPSPE) regulation in Honduras
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Aspects on the implementation of the Electronic Payment Service Provider Entities (EPSPE) regulation in Honduras

In previous months we wrote about the entry into force of the Regulation of Electronic Payment Service Providers (EPSPE). Now that the deadline has passed for companies in this area to adapt and register in the EPSPE registry, which for such purpose is kept by the Central Bank of Honduras, and based on our experience…

Green financing in Latin America
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Green financing in Latin America

Green finance is a way to support sustainable development, encourage investment decisions and develop projects that seek to generate a positive impact from the financial trenches. Every year there is a growing emphasis on environmental awareness and the urgent need for sustainable development for all. Green finance – the integration of environmental, social and governance…

Digital transformation in Nicaragua with checks truncation
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Digital transformation in Nicaragua with checks truncation

On December 14, 2022, the Central Bank of the Republic of Nicaragua (“CBN”) approved Resolution CD-BCN-LXXX-1-22 “Check Truncation Regulation” (hereinafter, the “Regulation”) with the in order to regulate and establish the requirements and procedures that must be met in the process of truncation of bank checks by the participants of the Nicaraguan Interbank System of…

New Income Tax Law proposed in Costa Rica
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New Income Tax Law proposed in Costa Rica

On May 18, 2023 the Executive Branch submitted five bills to the Legislative Assembly related to fiscal and public finance matters. The aforementioned bills are: File 23759: Modification of the Tax Code regarding joint and several liability in tax matters. File 23760: New Income Tax Law. File 23761: New Vehicle Property Tax Law. File 23762:…

Cancellation of an old mortgage in Nicaragua
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Cancellation of an old mortgage in Nicaragua

By: Daniela Matus Many debtors with loans originated in Nicaragua before the economic crisis of the national financial system in the year 2000-2001 and with old mortgages that had not been cancelled, did not know which institution they needed to go to cancel the mortgages on their properties or which procedure to follow or before…