Sanctioning anyone who transfers money through systems not authorized by the competent authority with an 8 to 15-year prison term is part of the bill that will be presented to the Assembly.
On November 12, the Cabinet Council approved the bill adding article 253-A to the Criminal Code, which will be presented to the National Assembly for discussion and subsequent approval.
Guatemala's business sector responded with concern to President Trump's warning about imposing export tariffs and levies on remittances and transfers.
The announcement made by the president of the United States comes after the Guatemalan Constitutional Court issued a ruling in which it limits its foreign policy functions to the Executive, by granting a provisional injunction that prevents the negotiation or signing of any agreement.
During 2018, family remittances to Central American countries and the Dominican Republic totaled $28.670 million, of which $9.288 million went to Guatemala.
In 2018, family remittances to Central America and the Dominican Republic (CARD) grew 11%, showing a slight slowdown with respect to what was observed in 2017 (12.0%). This slight slowdown was observed in all countries except Honduras, explained the Economic Commission for Latin America (ECLAC).
The US president is already putting into practice his premise "America First", which leads Central America to anticipate negative changes in the flow of remittances from that country.
From a statement issued by the Central Institute for Fiscal Studies (Icefi):
Icefi recommends changing the economic and fiscal model in Central America in light of possible adoption of radical US policies.
Western Union Panama and the pawn and loans company Más Me Dan have joined their distribution networks in order to capitalize on the growing market for sending and receiving money.
In the first half of the year alone $223 million was sent to Panama in remittances, while $395 million was sent out, to destinations such as Colombia, China and the United States, the three main recipients, followed by Nicaragua, Mexico and Costa Rica.
With recent increases in the arrival of workers from other countries there was an increase in remittances sent abroad, which in 2014 totaled $ 812 million.
The remittance business is growing in Latin America, driven by international labor mobility which is now growing rapidly, following the impasse of the financial crisis of 2008.
According to Katiuska Hernandez in her article on Martesfinanciero.com, "...
The increasing number of foreign residents in the country and the good performance of the economy explain the 16% increase in transfers of money abroad in 2013 compared to the previous year.
Unlike other countries in Central America, in Panama there are more dollars sent out in the form of remittances than those coming in, a trend that has been consolidated in recent years, in parallel with the economic growth and the growing presence of foreigners coming to work in the country.
The amount of remittances from one Central American country to another now reaches $1 billion.
Revistamyt.com reports: "The money transfer company AirPak, representative of Western Union (WU) in Central America, has announced the start of a strategy that aims to compete in the market of remittances sent by internal migrants in the isthmus."
According to Carlos De Paredes, manager of the company in Guatemala, the local market is worth around $300 million and about $1 billion at the regional level. The firm has no presence in Panama.
A bill on Money Laundering proposes creating stricter regulations to govern companies that perform money transfers.
About 16 companies are in the sights of the Ministry of Trade and Industry (MICI) because of the number of Suspicious Activity Reports (SARs) on possible money laundering.
It is for this reason that through a bill soon to be presented to Congress the MICI and the Financial Analysis Unit (UAF), will insist that documents are requested from customers making deposits or carrying out money transfers. When the bill is passed, the Ministry of Commerce will have to re-establish regulations for 581 companies which include remittance companies and credit history agencies operating in Panama.
New firms are expected to entry in the remittance industry with new technologies, especially for mobile phones.
According to Luis Felipe Rodriguez, vice president and general manager of Western Union in Mexico, the slowdown in the U.S. economy has led to a slower pace of job creation, which along with more efficient border controls and even more restrictive laws in some states such as Arizona, has caused an unprecedented decline of migration to that country. "Regulation in the United States is changing the dynamics in the business of remittance companies," he says.
During 2012, $500 million was registered in Panama as remittance inflows and outflows, while exports of goods only generated $80 million for the country.
Amounts received in remittances already exceed $500 million, while remittances sent abroad are increasing and in 2012 they reached $321 million.
"The business of remittances sent and received from Panama added up to a total of $533.7 million last year.
Billions of dollars that alleviate poverty but put conditions on the productive development of Central American countries.
Taking the example of El Salvador, whose economy over the last 20 years has received $40 billion dollars sent by Salvadorans from abroad, an article by Roberto Flores in Alainet.org points to the extraordinary influence of the phenomenon in reducing the poverty-despite the stagnation of the Salvadoran economy-but also its involvement in the country's productive matrix.
During 2012 $324 million was sent from Panama to more than 30 countries that include Nicaragua and Colombia, while $211 million was received.
The figures show that in 2012 capital outflow using this system grew by 29%, while what was received decreased by 45%, which consolidates Panama as an exporter of remittances as is the U.S.
According to Jaime Lacayo, former owner of the remittance house Cintel Corporation, Panama is an importer of remittances because Panamanians do not go to live in other countries. "Immigrants from different countries have chosen to settle in Panama in order to take advantage of the boom", he said.
From the month of September recipients of remittances in Guatemala, Honduras and El Salvador will be able to receive them on their mobile phones.
By using a its cellular network platform, the Guatemalan company Tigo Money, a subsidiary of Tigo, will offer international services for money receipts.
Since early 2011, Tigo Money has been in the remittance business nationally in Guatemala.