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Guatemala enacts new law to combat money laundering, faces adaptation challenges
🇬🇹 Guatemala /Crime & Justice

Guatemala enacts new law to combat money laundering, faces adaptation challenges

From Prensa Libre · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

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  • Guatemala has enacted a new comprehensive law to combat money laundering and the financing of terrorism, strengthening controls against illicit financial activities.
  • The law introduces new guidelines on beneficial ownership, politically exposed persons, and enhanced due diligence for state contractors and suppliers.
  • Experts acknowledge the law's strengthening of financial traceability but caution that criminals may adapt by using straw purchasers or offshore companies.

Guatemala has implemented a new comprehensive law, Decree 15-2026, aimed at preventing and combating money laundering and the financing of terrorism. This legislation significantly bolsters controls designed to curb illicit financial activities within the country.

The figure of the beneficial owner will allow us to trace the destination of money with greater precision.

— Guillermo Díaz CastellanosExplaining the impact of new beneficial ownership regulations.

The law introduces several key changes, including new guidelines for identifying the ultimate beneficial owner (UBO) of assets, stricter identification protocols for Politically Exposed Persons (PEPs), and enhanced scrutiny of state contractors and suppliers. It also mandates the registration of shareholders and expands due diligence requirements, granting the Intendencia de Verificación Especial (IVE) greater supervisory powers.

These measures are considered crucial for dismantling complex structures used to conceal or move resources derived from illegal activities. While the law strengthens controls, experts like Guillermo Díaz Castellanos from Universidad Rafael Landívar note that it may not entirely eliminate the risk of money laundering. He points out that the use of straw purchasers and offshore companies could still be employed to obscure beneficial ownership, and the law's scope is primarily limited to close family circles.

This makes it difficult to use paper construction companies or front companies to hide the origin or destination of public funds.

— Douglas GonzálezCommenting on the increased scrutiny of state contractors under the new law.

Douglas González, an independent political analyst, highlighted that the law specifically targets shell companies, particularly those involved in public works. It compels the identification of individuals who truly control or benefit from a company, even if they operate through complex corporate structures, family members, or trusts. This increased scrutiny makes it more difficult to use fictitious entities to hide the origin or destination of public funds. The new law replaces previous legislation on money laundering and terrorism financing, consolidating them into a unified legal framework.

The law strengthens traceability, but it does not completely eliminate the risk of money laundering.

— Guillermo Díaz CastellanosAcknowledging the law's strengths while noting potential limitations.
DistantNews Editorial

Originally published by Prensa Libre in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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