El Salvador
Last updated: 11/05/2009
CENTRAL AUTHORITY FOR REPORTING
Financial Investigation Unit (FIU) of the General Attorney´s Office (Unidad de Investigación Financiera de la Fiscalía General de la República).
OTHER ANTI-MONEY LAUNDERING REGULATOR(S)
The Legislative Branch is the main entity entitled to legislate in El Salvador. The Executive Branch may, according to the current law, establish the regulation of the Anti-money laundering Law.
To date, the existing regulation establishes that the General Attorney’s Office may issue forms and manuals through the FIU for guidance, control and avoidance of any money laundering activities.
ARE LAWYERS COVERED BY ANTI-MONEY LAUNDERING LEGISLATION?
There is no anti-money laundering legislation applicable to lawyers per se. All individuals are covered by Anti-money laundering legislation in El Salvador, so long as the activity undertaken by them is in relation to article 2 (i) of the Anti-money Laundering Law of El Salvador.
Hence it is not position as a lawyer that is subject to this regulation but the activities that are undertaken by them such as systematic or substantial transfers of money, granting of loans, etc.
LIST THE LAWS REGARDING ANTI-MONEY LAUNDERING, INDICATING WHICH LAWS ARE APPLICABLE TO LAWYERS.
As mentioned above, there is no anti-money laundering legislation applicable to lawyers per se, but if any individual performs a prohibited activity under Anti-money laundering legislation, the following regulations will apply:
- Anti-money laundering Law;
- Regulation of Anti-money laundering Law;
- Penal Code;
- Penal Procedures Law.
ARE VISITING LAWYERS SUBJECT TO LOCAL LAWS REGARDING ANTI-MONEY LAUNDERING, AND, IF SO, TO WHAT EXTENT?
Yes. Individuals are obligated to comply with local laws the moment they enter El Salvador.
LIST ANY MONEY LAUNDERING GUIDANCE FOR LAWYERS (FOR EXAMPLE, LAW SOCIETY OR BAR ASSOCIATION GUIDELINES) CURRENTLY IN PLACE.
There are no specific guidance for lawyers per se. The FIU has issued a manual for all the entities and individuals that are subject to anti-money laundering laws.
IS THE LAW SOCIETY/BAR ASSOCIATION INVOLVED IN SUPERVISING OR ENFORCING COMPLIANCE WITH ANTI-MONEY LAUNDERING REGULATIONS?
No.
DESCRIBE CLIENT DUE DILIGENCE REQUIREMENTS, INCLUDING WHEN IT MUST BE UNDERTAKEN BY LAWYERS.
There is no requirement by law to perform client due diligence. However, firms may perform due diligence as part of their corporate practices and as part of the policy of “knowing your client”.
DOES YOUR COUNTRY FOLLOW A RISK-BASED APPROACH TO CLIENT DUE DILIGENCE BY LAWYERS?
No.
ARE THERE ENHANCED DUE DILIGENCE MEASURES FOR CERTAIN TYPES OF CLIENTS, FOR EXAMPLE, POLITICALLY EXPOSED PERSONS?
No.
ARE THERE SIMPLIFIED DUE DILIGENCE MEASURES FOR CERTAIN TYPES OF CLIENTS, FOR EXAMPLE, LISTED COMPANIES?
No.
ARE LAWYERS PERMITTED TO RELY ON THIRD PARTY DUE DILIGENCE? IF YES, PLEASE DESCRIBE.
The law does not require lawyers to perform such due diligence. If a firm decides to undertake due diligence, it has the freedom to do it on its own terms or through a third party.
WHEN IS A LAWYER UNDER AN OBLIGATION TO REPORT SUSPICIOUS TRANSACTIONS?
All individuals and entities subject to anti-money laundering regulation have the obligation to report suspicious transactions to the FIU. Therefore, a lawyer will be required to inform the transaction to the FIU if in any given time he/she falls within the description of covered entities.
Nonetheless, if the lawyer acquires the knowledge of the suspicious transaction under the attorney/client privilege, he/she is prohibited to disclose confidential information.
DOES ATTORNEY/CLIENT PRIVILEGE AND/OR DUTIES OF CONFIDENTIALITY PROVIDE A DEFENCE OR PARTIAL/TOTAL EXCEPTION TO THE REQUIREMENT TO REPORT SUSPICIOUS TRANSACTIONS?
Yes. Attorney/client privilege or duties of confidentiality will provide a defence for the lawyer for not reporting suspicious transactions. Nonetheless, if the lawyer participates and obtains benefits from the illegal activities, this would not apply as attorney/client privilege and the individual may be treated as an accomplice or participant of a crime.
DOES LOCAL LAW PROVIDE ANY CRIMINAL AND/OR CIVIL INDEMNITY TO A LAWYER WHO HAS REPORTED A SUSPICIOUS TRANSACTION?
Yes, but only if the lawyer reports the activity before the completion of the crime.
ONCE A SUSPICIOUS TRANSACTION REPORT HAS BEEN FILED, IS A LAWYER ALLOWED TO PROCEED WITH THE LEGAL ADVICE/TRANSACTION, AND, IF SO, MUST CONSENT FROM AUTHORITIES BE OBTAINED FIRST?
No. If the lawyer proceeds with the advice or transaction it may be considered as jointly liable.
IS THERE A TIPPING-OFF PROHIBITION? IF YES, PLEASE DESCRIBE.
Yes, Lawyers, Notary Publics, Church Ministers, Doctors and Health Professionals and Public Officers and Employees have an obligation to respect confidentiality of information they have access to whilst undertaking their professional duties.
The law establishes an exception to this prohibition only to doctors, health professionals, public officers and employees.
DESCRIBE ANY RESTRICTIONS ON ACCEPTING A NEW CLIENT.
There are no restrictions except when representing counterparts in the same case in a judicial procedure.
ARE THERE ONGOING MONITORING REQUIREMENTS FOR EXISTING CLIENTS? IF YES, PLEASE DESCRIBE.
No.
DESCRIBE ANY OTHER WAYS IN WHICH LAWYERS ARE AFFECTED BY ANTI-MONEY LAUNDERING LEGISLATION.
None.
HAVE LAWYERS IN YOUR JURISDICTION BEEN IMPLICATED IN MONEY LAUNDERING, INCLUDING ANY TYPE OF COMPLAINT, ARREST OR PROSECUTION?
According to some news publications, lawyers have been implicated in money laundering, not through counselling their clients who have performed money-laundering activities, but through their own participation in illegal activities.
HAS THE FINANCIAL ACTION TASK FORCE (FATF) CONDUCTED A MUTUAL EVALUATION OF THIS COUNTRY, AND, IF SO, WHAT WERE THE FINDINGS CONCERNING LAWYERS’ COMPLIANCE WITH THE FATF 40+9 RECOMMENDATIONS?
An evaluation report for El Salvador has been published by the Caribbean Financial Action Task Force in 2005.
Information supplied by:
Consortium Centro América Abogados – El Salvador’s Office
Mr Ricardo A. Cevallos
Mr Aquiles A. Delgado
Mr Diego Martín-Menjívar
Ms Stephanie Montoya
Mr Herbert Silva
67 Avenida Sur
Pasaje.2
26, Colonia Escalón
San Salvador
El Salvador
Website: www.consortiumlegal.com
General Email: elsalvador@consortiumlegal.com