The superintendency of Banks and Other Financial Institutions (SIBOIF), the control body of the dictatorship’s banking system, has already shown effective and sharp fangs when it comes to applying sanctions to bleed thousands of dollars from national banks for minor and routine, and that is a sample of what awaits the country’s financial institutions if they dare to violate the Sanctioned Law.
During 2024, seven financial institutions have been sanctioned with fines totaling 128 thousand dollars plus 2 million 219 thousand 894 córdobas.
This year the SIBOIF fined the Ficohsa Bank twice. The first sanction against this financial institution was in May, through resolution OSB-007-2024, with 20 thousand dollars for “non-compliance with the CoR Regulation”, that is, a regulation on Risk Centers.
The second through resolution OSB-013-2024, from May of this year with 10 thousand dollars for “Failure to report Related Parties.”
Meanwhile, the Produccion SA bank (Banpro) received two sanctions in the same month of May, the first of 2 million 146 thousand 926 córdobas, for “Breach of Law No. 842 Law on the Protection of the Rights of users” and the second of 21 thousand dollars, for “Inspection results.”
For its part, the Bank of Finance (BDF) has also received two fines this year. One in February for $70,968 córdobas for non-compliance with “transparency regulations” and the other also in February for an amount of 23 thousand dollars, motivated by “Inspection results (Standard on Credit Risk Management, Standard for Comprehensive Risk Management) ».
The state Production Development Bank has also been sanctioned, on April 26 of this year, with 3 thousand dollars for “Inspection Results.”
Then Financiera Fama, which was fined $10,000 as a result of “inspection of the standards for the implementation of the accounting framework,” on March 21.
Another fine was for Banco Lafise Bacentro SA, with 20,000 dollars. The reason was “the result of an inspection of the rules on contracting financial services providers” on February 21. And finally Banco Avanz SA, with 21 thousand dollars and the reason was “results of infection”, on June 7, 2024.
The Law that threatens
The dictator Daniel Ortega ordered, on November 25, his political operators used as deputies to approve the Law for the Protection of Nicaraguans against Sanctions and Aggressions, known as the “Law of the sanctioned” with which he intends to force national banks to reopen accounts and resume banking services to officials of the dictatorship and political operators sanctioned by the international community.
This law threatens financial institutions with economic sanctions and even jail if they refuse to comply with the new provision with which the regime tries to evade the designations. However, analysts on banking and finance issues have warned that if Nicaraguan banks violate Foreign sanctions risk losing their correspondent relationships with international banks and, consequently, billions of dollars in remittances and trade payments will stop circulating through the banking network, with serious consequences for the Nicaraguan economy.
Related news: Ortega reforms the SIBOIF regulations to impose “tricks” on banks and have them open accounts for sanctioned people
However, the SIBOIF has already issued a circular reforming the regulations for the Prevention of Money Laundering and Financing of Terrorism (ML/FT) and at the same time establishing that said rule must be applied to the Law on Sanctioned Persons so that the restriction only covers those sanctioned. under accusations of money laundering and financing terrorists and not corrupt people, violators of rights and executors of fraud to dismantle democracy, as the United States and other countries have designated Sandinista officials.
However, this same Monday the United States Department of State, in response to a query from Article 66responded that any “action that seeks to evade sanctions, we will respond accordingly.”
The Sanctioned Law was published in the Official Gazette and came into effect on November 25, hours after being approved in the Parliament controlled by Daniel Ortega.
