Guatemala modernizes financial controls with new anti-money laundering law, avoiding 'gray list'

Guatemala has taken a significant step toward strengthening its financial system and international standing with the approval of Decree 15-2026, a new comprehensive law against money laundering and the financing of terrorism (ML/FT). The Guatemalan Congress passed the legislation on June 2, aiming to modernize financial controls and avert the risk of the country being added to an international "gray list."

The new law repeals the previous Decrees 67-2001 and 58-2005, which had become outdated in the face of evolving financial crime typologies and international standards. The "Ley Integral para la Prevención y Represión del Lavado de Dinero u Otros Activos y del Financiamiento del Terrorismo" consolidates previous regulations into a single legal framework. It introduces advanced control mechanisms, marking a significant reform in financial supervision and regulation.

Key changes include a shift to a three-tiered, risk-based approach (EBR), the mandatory identification of ultimate beneficial owners (UBOs), and the expansion of regulated entities. These updates are crucial for combating modern financial crimes, such as those involving virtual assets and complex transnational criminal structures, including gangs designated as terrorist groups. The law also establishes an administrative preventive regime and a penal repressive regime, alongside creating the National Council for Coordination of Efforts Against Money Laundering and Terrorism Financing (Conclaft) to enhance institutional coordination.

For Guatemala's financial sector, the immediate challenge lies in implementing and complying with the new, more complex regulations. This transition will necessitate investments in technology, specialized training, and a re-engineering of risk management and due diligence processes. The successful adoption of this law is vital for maintaining financial integrity and fostering trust with international partners.