Market actors in El Salvador claim that transactions are being subjected to double retention, both by brokerage firms and the bank related to it.
Because of the speed with which the financial sector has been forced to comply with the withholding tax on financial transactions, effective from September 1st this year, the same market participants are claiming that investors are suffering because they are being billed the tax twice on each transaction.
The Superintendency of Banks and Other Financial Institutions of Nicaragua has authorized Banco Corporativo to carry out financial intermediation activities in the country.
The entry of a new financial market participant is received favorably by other banks, provided that "... competitors receive the same conditions. 'Under these paramenters I do not see any problem' ...", mentioned Laprensa.com.ni Juan Carlos Samson, manager of BAC Credomatic.
Although the banks had sought to extend the term, starting September 1 entities must charge 0,25% on operations over $1000.
From September 1 banks, credit unions and savings and loans companies must withhold 0.25% for every transaction in made in cash, by check or electronically worth over $1,000.
The Directorate General of Internal Revenue, at the Ministry of Finance has published the regulations that refer to the new taxes.
Banco Industrial has announced that it is prepared to start operations in Panama's financial center in the first quarter of 2015.
The Bank which is of Guatemalan origin, and which already has a presence in Honduras and El Salvador, is preparing to open its offices in Panama City, driven by the economic growth there.
Diego Pulido, manager of the company, told Elperiodico.com.gt "...
The banking sector has requested a period of 6 months before starting the process of withholding tax on financial transactions as approved during a recent tax reform.
The Salvadoran Banking Association (Abansa) requested an extension of 6 months for the start date for collections of the tax on financial transactions, pushing it back to February 2015 instead of 1 September, as planned by the government.
The Superintendency of Banks is preparing regulatory changes in order to reduce the time it takes to clear a check from three days to just one.
The rules that the regulator has proposed in Agreement 1-2014, issued in March, aims to improve safety and modernize the means of payment of the country, punctually, standardizing checks circulating in the Panamanian financial center.
Feeling threatened by the announcements of rationalization of state payroll as a first step towards solving the fiscal crisis, unions are once again pushing the tax on financial transactions.
EDITORIAL
The Costa Rican banking sector reacted to the possibility that the new Solis administration is reanimating the discussion on the implementation of the Tobin Tax, also known as the "Robin Hood tax" alluding to it taking away from those who have more in order to give it those with less.
A potential tax on financial transactions would discourage investment in the stock market as securities would be taxed each time they are traded.
In light of a tax proposal that would tax at 0.25% per $750 all kinds of securities, including repos and securitizations, the Stock Exchange of El Salvador (BVES) has expressed its concern for contracts already traded on the market and its dampening effect on investment.
The inclusion of Panama in the Colombian government's gray list could mean surcharges on capital repatriation by investors in the country.
"If Panama is included on a (Colombia's) gray list, it will affect the Colombian investments that exist in Panama and which have a strong presence in banking and other industries, because they will pay a surcharge when they repatriate their profits," the outgoing Minister of Economy and Finance in Panama, Frank De Lima, said.
Warnings have been given that the tax in the approval process in the Legislature would create more evasion affecting all sectors of society.
The new tax would be of 0.25% on financial transactions exceeding $750, applied to the deposit holders who ordered payments or transfers and financial entities performing loan disbursements of any kind.
Added to the normal negative effects of a new tax, such as being an incentive for evasion, discouragement of investment, and in this case generation of inflation, are also "... The ambiguity in the wording ... "it is not clear if this excludes tax remittances, since ' ... the majority of remittances entering the country are money transfers to third parties using an electronic system.'
With the implementation of the Standardized Bank Accounts starting July 1st banking transactions will be streamlined.
From a statement issued by the Bank of Guatemala (BANGUAT):
Standardized bank accounts for Guatemala will come into effect, firstly, to standardize the numbers of current and savings accounts, which are commonly used to transfer funds electronically at the interbank level, through internal and external systems in the country.
The Panamanian banking sector has suggested that the government create a new entity focused on formal promotion of the international services offered by the country.
Industry representatives are hoping that the National Assembly and the new Minister of Economy and Finance, will take actions against the entry into force of Law 47 which establishes a regime of custody for bearer shares.
Economic growth and low interest rates in the United States explain the increase between 2011 and 2013.
With an average annual growth of 8% in the past five years, according to data from the Superintendency of banks of Panama (SBP), bank deposits were $59.626,93 million in February of 2014 $39.919,66 million in February 2009.
The Economist Raúl Moreira, explained to Capital.com.pa that "the performance of deposits is due to the pace of the economic growth of the country, which has been increasing in a significant way because there is a lot of investment - both domestic and foreign - and that is reflected in some way in the pace of expansion of the banking sector and is an example of Panama's economic and financial health."
It has been announced that from March Costa Rican banks will be able to allow their customers access to the Central Interconnected System of Payments.
From a press release by the Central Bank of Costa Rica:
A new service has been developed called 'Pagos al Exterior (PEX)' (Foreign Payments), which will allow individuals and legal persons resident in the country, to send and receive transfers of funds to and from accounts in a financial institution located in El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic. The aim of the service is to provide a fast and secure technology platform for processing commercial payments and remittances in the region.
Financial operators who allow transactions to be made using mobile phones must have support capital and put a limit on the amount of transactions.
The project in consultation with the private sector was prepared jointly by the Superintendency of the Financial System (SSF) and the Central Reserve Bank (BCR).
"It is not because they are prohibited (financial transactions on devices), but we must normalize them, because if there are operations which are not regulated in the future may end up being something abnormal," said Victor Ramirez, chief of the SSF.