The number of companies or individuals raising money from investors without authorization from the Superintendency of Banks now totals 73.
Since 2000 to date 73 companies have been reported as raising money from investors without a proper license to operate in the country.
"Although fines for exercising banking functions without the appropriate license can reach up to $1 million and the Financial Offences Act establishes penalties ranging from three to five years for anyone who collects money in a massive and regular manner from the public financial without proper authorization from the competent authorities, the SBP list continues to grow", reports Capital.com.pa
The prolonged intervention of the Supreme Court in the Financial Pacific puts into question the adequate functioning and reputation of the financial system.
The latest news is that the Chief Superintendent of the Panama Stock Exchange (SMV), Alejandro Abood, could recuse himself in the stock market scandal of the brokerage firm Financial Pacific (FP), suspended for embezzling 14 million dollars.
Government to government agreements simplify compliance with the rule that seeks transparency in the finances of U.S. citizens abroad.
Elfinancierocr.com reports that "the Foreign Account Compliance Act (FATCA) is a reality and the truth is that to date, there are very few financial institutions in our region who are prepared to meet the requirements of this U.S.
Usurious practices by any creditors are sanctioned according to maximum rates set by the Central Reserve Bank.
A statement by the Legislature:
The Legislature approved with 77 votes, in Plenary, the usury law, regulations that prohibit and punish usurious practices by all kinds of creditors, whether individuals, corporations, institutions of the financial system, trading houses, pawnshops, dealers goods and services and pawn shops, among others.
Interbolsa’s assets, liabilities and contracts have been acquired by Bancolombia in order to ensure the stable operation of the public debt market and Colombia’s payment system.
A statement from the Financial Supervision reads:
FINANCIAL SUPERVISOR AUTHORIZES MEASURES WITHIN THE TAKEOVER PROCESS OF INTERBOLSA SCB
- Authorization has been given for Interbolsa SCB to transfer to Bancolombia its operations of future performance, repurchase agreements and sell/buy-back transactions backed by TES, ensuring stability in the operation of the public debt market and payment system.
Information will be available on credit cards, secure electronic banking, savings accounts and debit cards, credit and guarantees, and related procedures.
A statement from the Costa Rican Banking Association (ABC) reads:
First Financial Virtual Library
Banking system launches new information tool for users
- The Initiative aims to increase the levels of transparency between banks and consumers.
For the volume of assets and loan portfolios they manage, cooperatives together make up the fourth largest financial operator ivn the country.
In Costa Rica, the 30 cooperatives under the supervision of the Superintendent of Financial Institutions (Sugef) exceed in value the assets and loan portfolio of the "private bank BAC San José and are below the banks, Banco Nacional, Banco de Costa Rica and Banco Popular which are funded by public capital. "
For class "A" businesses, the lending rate in domestic currency now stands at 14.7% and 7.2% for loans in foreign currency.
A 100 basis point increase in the Monetary Policy Rate (MPR) decreed by the Central Bank of Honduras on 14 May, is the main reason behind this increase.
After the hike in the monetary policy rate, the response from the Honduran Association of Banking Institutions (Ahiba) was given immediately: "the action of the board of BCH has resulted in increases in interest rates, increasing borrowing costs and reducing the circulating currency, thereby affecting the availability of credit for the private sector. "
The bill for the Efficient Management of Public Finances contains reforms that would make the system inviable.
The law intends to make the cost of supervising the securities market be fully covered by its participants (Stock Market, Ceval, Brokerage Houses and Mutual Funds), who currently contribute 20%.
José Rafael Brenes, head of the National Stock Exchange in Costa Rica, argues that this provision would be lethal to the system, since the cost of monitoring would represent 53% of market participant’s profits, which currently represents 10%.
The bill which creates the Financial Analysis Unit in Nicaragua does not clarify the obligation to provide a basis for investigations conducted by the institution.
The Superior Council of Private Enterprise (COSEP) and the Association of Private Banks of Nicaragua (Asobanp) have pointed out inaccuracies in a legislative decree regarding the power the future Financial Analysis Unit to conduct investigations in Nicaragua.
The government of Costa Rica is promoting a legal reform that would transfer the cost of financial supervision to banking institutions, insurance companies and pension operators.
The legal amendment was included in the Bill for the Efficient Management of Public Finances already sent to the Legislature.
So far, "the Central Bank is funding 80% of the operation of the Superintendent of Financial Institutions (Sugef), the Superintendent of Securities (Sugeval), the Superintendent of Pensions (Supen) and the Superintendent of Insurance (SUGESE)," reported Nacion.com.
This historical record of 7% on average in Guatemala's banking system could stimulate investment.
Paulo de León, from the company Central American Business Intelligence (Cabi), told a group of government officials in Guatemala that banks are now offering an average rate of 7%, the lowest interest rate in the last 40 years.
"It's a good time for financial players to make investments or reinvestments," said De Leon, according to Prensalibre.com.
Banks in Costa Rica must provide customer’s banking information directly to Costa Rican Drug Institute when requested by the office.
Financial institutions must provide people’s banking data to the Financial Intelligence Unit (FIU) on request, as prescribed by executive decree. The FIU is a department of the Costa Rican Drug Institute (ICD).
"This is the 'general regulation on legislation against drug trafficking, related activities, money laundering, terrorist financing and organized crime', published by the Executive on 17th January in the Official Gazette," reported Nacion.com. Mid-April is the deadline for all institutions involved to meet the standards of the decree.
The Superintendency of Banks in Panama is keeping a list containing names of companies that are not authorized to perform private banking or trust activities.
Current investigations into the company Pronto Cash has brought to the fore the risk of financial fraud by companies which are not controlled by the Superintendency of Banks.
An article in Panamaamerica.com states that "The latest company to be cited in a warning by the Superintendency of Bank is the financing firm Pronto Cash. The banking sector regulator said the finance company 'is not allowed to collect, in or from Panama, directly or indirectly money from the public by accepting deposits or in any other form. '"
The application of internationally used theoretical models by emerging countries is like "precision measuring with a ruler, drawing with a pencil and cutting with an axe."
"According to various surveys on international financial policies and practices, the most commonly used to estimate the cost of shareholders’ resources is the Capital Asset Pricing Model , known as CAPM for short."