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…

New regulation of minimum requirements for the establishment of supervised institutions, circular No.002/2023 in Honduras
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New regulation of minimum requirements for the establishment of supervised institutions, circular No.002/2023 in Honduras

By: José Ramón Paz Morales On January 10, 2023, the National Banking and Insurance Commission (CNBS) issued the new regulation of minimum requirements for the establishment of supervised institutions. With this new regulation, the CNBS continues with its policy of verifying that the different stakeholders, in this case, shareholders and investors of supervised institutions, comply…

Registration of foreign reinsurers and public registry before the national banking and insurance commission (CNBS) in Honduras
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Registration of foreign reinsurers and public registry before the national banking and insurance commission (CNBS) in Honduras

By: Claudia Aguilar The National Banking and Insurance Commission (CNBS), within the scope of its attributions, approved Resolution SS No.2006/16-12-2010, containing the “Regulations for Reinsurance Operations and Registration of Foreign Reinsurance Companies and Reinsurance Brokers”. Its purpose is to establish the rules applicable to the supervision of reinsurance and fronting operations carried out by the…

Practical implications of regime change in the microfinance sector in Nicaragua
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Practical implications of regime change in the microfinance sector in Nicaragua

By: María Lizeth Prado  On November 15, 2022, was published in The Gazette Official Daily No. 214, Law No. 1137 “Special Law for the Change of Legal Regime of Non-Profit Organizations” which, according to its text, has the purpose of establishing the procedure for the change of regime from non-profit to mercantile of the entities whose…

Approval of the regulations on centralized registry entities for electronic bills of exchange and promissory notes in Costa Rica
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Approval of the regulations on centralized registry entities for electronic bills of exchange and promissory notes in Costa Rica

On Tuesday, February 8, it was announced the approval of the SUGEVAL 21-23 agreement “Regulation on Centralized Registry Entities of Electronic Bills of Exchange and Promissory Notes”, which will be in force one (1) month after its publication in the official gazette La Gaceta. This Regulation complements the Law on Electronic Bills of Exchange and…

New technical regulations for risk management of money laundering, terrorist financing and financing of weapons of mass destruction in El Salvador
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New technical regulations for risk management of money laundering, terrorist financing and financing of weapons of mass destruction in El Salvador

By: Marcela Zelaya The purpose of the Anti-Money Laundering Law is to prevent, detect, sanction and eradicate the crime of money laundering, as well as its concealment, expressly stating that financial entities must adopt policies, rules and mechanisms of conduct, as well as develop and implement programs, standards, procedures and internal controls to prevent activities…

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The validity of the electronic signature on a promissory note and its enforcement in an executive judgment

By: Melissa Morán The promissory note is a credit instrument that entails an unconditional promise to pay a determined sum of money and must comply with certain general and specific requirements in order to be valid, pursuant to the Code of Commerce, Decree 2-70 of the Congress of the Republic and its amendments (the “Code…

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What should my organization take into account for the regime change of an NPO in Nicaragua?

By: María Lizeth Prado General information on the purpose and scope of the Law On November 15, 2022, Law No. 1137, Special Law for the Change of Legal Regime of Non-Profit Organizations was published in La Gaceta – Official Gazette No. 214, which has the following objectives: 1. To establish special conditions and procedures for…

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Validity of electronic signature on promissory notes and its enforcement in executory proceedings in Guatemala

By: Melissa Morán The promissory note is a credit instrument that entails an unconditional promise to pay a determined sum of money and must comply with certain general and specific requirements in order to be valid, pursuant to the Code of Commerce, Decree 2-70 of the Congress of the Republic and its amendments (the “Code…

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Increase in the volume of remittances in Nicaragua and applicable regulation

By: Mónica Brenes and Rodrigo Taboada According to a report published by the Central Bank of Nicaragua (“BCN”) on August 3, 2022 the flow of remittances registered in the country in the second quarter was US$763.6 million U.S. dollars, which implies a growth of 44.1% with respect to the same quarter of 2021. In the…

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Contractual recommendations on the disappearance of the Libor rate in financing contracts entered into in Central America

Regional Banking and Finance Team Introduction By virtue of the discontinuation of the Libor rate for one (1) day, one (1), three (3), six (6) and twelve (12) month terms, as of June 30, 2023, as communicated by the authorities in charge[1], banks and other financial institutions worldwide, have decided to modify by means of…