Guatemala Approves Law Requiring Identification of Ultimate Beneficial Owners

Guatemala is set to enhance its fight against financial crime with the approval of Decree 15-2026, the Comprehensive Law for the Prevention and Repression of Money Laundering or Other Assets and Terrorism Financing. A key innovation is the introduction of the Ultimate Beneficial Owner (UBO) concept, requiring companies and legal structures to identify and disclose the individuals who ultimately benefit from or control them.

The law defines a UBO as any individual who ultimately benefits from, exercises control over, or both, legal persons or structures. This control can be exercised through direct or indirect ownership of 15% or more of the capital, or by any other means. The requirement aims to combat corporate anonymity, identify the true owners of economic resources, strengthen money traceability, and prevent corruption, aligning with international transparency standards.

Entities and professionals, including lawyers, economists, accountants, auditors, and notaries, are designated as "obligated persons" under the new law. They must implement due diligence measures, assessing and managing risks associated with their clients. These measures include verifying the identity of clients and their representatives, and crucially, identifying and confirming the identity of the UBO through reliable sources. The law's broad scope necessitates a detailed review by those affected to ensure compliance.