Compliance in Fintech Companies
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Compliance in Fintech Companies

Fintech companies are those dedicated to offering financial services through technological means. In some countries, there is special regulation for these types of companies, while in others, they are governed by common law legislation. This distinction is important for Fintech companies regarding compliance issues because depending on the applicable legislation, their compliance framework can be…

Towards a Stronger Industry: The Implications of Reforms in Microfinance in Nicaragua
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Towards a Stronger Industry: The Implications of Reforms in Microfinance in Nicaragua

Since July 11, 2011, Microfinance Institutions (MFIs) have been subject to the regulation of Law No. 769, known as the “Microfinance Promotion and Regulation Law.” However, the regulatory framework underwent a significant change on November 7, 2023, with the enactment of Law No. 1168, which amended the law previously mentioned. These reforms have brought about…

Fintech Laws in El Salvador
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Fintech Laws in El Salvador

Although the Fintech ecosystem is growing in El Salvador, following the global trend, there is still no specific legal framework for it. The absence of specific regulation has led these activities to develop within the free market, respecting the general financial regulations established for traditional financial participants. However, this has generated uncertainty for investors and…

Fintech Regulatory Report
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Fintech Regulatory Report

Central America is a region experiencing growth and development in the Fintech market. In recent years, some countries have enacted laws, regulations, and rules applicable to various types of financial technology services. However, other services offered by Fintech companies are regulated through general principles of law and the primary laws of each country. Nevertheless, there…

Regulatory efforts in Fintech matters in Guatemala
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Regulatory efforts in Fintech matters in Guatemala

In Guatemala, there is currently no specific legislation or regulation applicable to Fintech. However, due to the rapid growth and evolution of this ecosystem in the country, the Monetary Board, through proposals from the Banking Superintendency (SIB), has issued regulations related to the management of technological risks and even a draft law on electronic money…

Cybersecurity and personal data in the Fintech environment in Costa Rica
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Cybersecurity and personal data in the Fintech environment in Costa Rica

Currently, the issue of cybersecurity is of particular importance for companies operating in the Fintech ecosystem, which, precisely, operate at the intersection between finance, technology, and regulation, coupled with the exponential growth in the use of technological and digital means for the execution of financial transactions. Cybersecurity or information security of an entity or virtual…

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…

Legal aspects and trends in the use of electronic signature in Central America
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Legal aspects and trends in the use of electronic signature in Central America

Introduction In our different jurisdictions we saw that the application and implementation of electronic signatures was accelerated during the pandemic and in recent years, Central American countries have passed legislation that gives the same legal validity and effectiveness to electronic signatures as handwritten signatures. Today, we are beginning to hear of some precedents from regulatory…

Audited financial Statements and SAT in Guatemala
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Audited financial Statements and SAT in Guatemala

Since November 2021, the Tax Administration has made some communications with taxpayers requiring some specific forms regarding the presentation of reconciliations and audited financial statements, when applicable. It is important to start by defining who is obliged to submit such financial statements to the Tax Administration. Several legal bodies place this obligation. Income Tax In…

Joint and several liability of the legal representative in tax matters in Nicaragua
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Joint and several liability of the legal representative in tax matters in Nicaragua

Nicaraguan law requires companies to register as taxpayers with the General Revenue Directorate (DGI). The Single Registry of Taxpayers includes basic data of the company, such as: shareholder composition, current board of directors, fiscal domicile, economic activity, legal representative, etc. It is the taxpayer’s obligation to keep this information updated, being necessary to carry out…

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:…

Crimes and Misdemeanors in Migratory Matters in Central America
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Crimes and Misdemeanors in Migratory Matters in Central America

There are several crimes and administrative offenses that may be incurred in immigration matters. Within the Central American region, these offenses are punished in different ways, depending on the seriousness of the case. The regulating and sanctioning entity in the countries of El Salvador, Nicaragua, Costa Rica, and Honduras is the Directorate of Migration and…