Honduras
Last upadated: 18/05/2009
CENTRAL AUTHORITY FOR REPORTING
In Honduras the Central Authorities for reporting are the National Banking and Insurance Commission, the Financial Information Unit and the Seized Property Office of the General Attorney's Office.
OTHER ANTI-MONEY LAUNDERING REGULATOR(S)
The General Attorney's Office and Lower Claims Courts whenever the General Attorney’s Offices are no longer available.
ARE LAWYERS COVERED BY ANTI-MONEY LAUNDERING LEGISLATION?
No, there is no specific guidance for Honduran lawyers. Honduras has not implemented any law or regulation that specifically covers legal professionals.
However, lawyers are covered by the general criminal law applicable to all citizens, which prescribes money laundering as a criminal offense. In addition, a reform to the Law Against Money Laundering, (Decree number 25-2002) in 2007, established that notaries, who are authorized lawyers in Honduras, must comply with the obligations of reporting suspicious acts.
LIST THE LAWS REGARDING ANTI-MONEY LAUNDERING, INDICATING WHICH LAWS ARE APPLICABLE TO LAWYERS.
ARE VISITING LAWYERS SUBJECT TO LOCAL LAWS REGARDING ANTI-MONEY LAUNDERING, AND, IF SO, TO WHAT EXTENT?
Visiting lawyers would be subject to the general AML criminal law applicable to all Honduran citizens.
LIST ANY MONEY LAUNDERING GUIDANCE FOR LAWYERS (FOR EXAMPLE, LAW SOCIETY OR BAR ASSOCIATION GUIDELINES) CURRENTLY IN PLACE.
There is no specific Guideline for Lawyers concerning AML; there is, however, a Code of Ethics issued by the Honduran Bar Association from 1966, which prohibits Attorneys from advising in illicit or fraudulent affairs.
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 are currently no specific Anti Money Laundering regulations that impose client due diligence, record keeping or monitoring requirements on attorneys and/or law firms.
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?
There are no enhanced due diligence measures. Any measures would only arise from internal policies of law firms and/or attorneys.
ARE THERE SIMPLIFIED DUE DILIGENCE MEASURES FOR CERTAIN TYPES OF CLIENTS, FOR EXAMPLE, LISTED COMPANIES?
No. Any measures would only arise from the attorneys’ and/or law firms’ standard internal policies.
Honduras’s commercial registries do not issue certificates of good standing for any company whatsoever, so there are no simplified measures. The Honduran Constitution establishes the creation of a Company Superintendence but it was never instituted. If such superintendence existed it could impose simplified due diligence measures for listed companies.
ARE LAWYERS PERMITTED TO RELY ON THIRD PARTY DUE DILIGENCE? IF YES, PLEASE DESCRIBE.
Yes. Since there is no regulation whatsoever that either permits or restrict it, lawyers are permitted to rely on third party due diligence. The only restriction would arise from the attorneys’ and/or law firms’ own internal policies.
WHEN IS A LAWYER UNDER AN OBLIGATION TO REPORT SUSPICIOUS TRANSACTIONS?
Public Notaries, who are authorized lawyers in Honduras, are obligated to inform and report the transactions effectuated or not, that:
- According to the uses and customs of the activity and the modern techniques of electronic commerce result in complex, unlikely, unusual, or important transactions and do not respond to usual patterns;
- Are presented without an evident economic or legal justification;
- aving been legal or evident may nevertheless be suspicious;
- Any financial transaction that may build or be related to illicit activities and it is suspected that they may be or will be destined for the financing of terrorism or for acts of terrorism.
DOES ATTORNEY/CLIENT PRIVILEGE AND/OR DUTIES OF CONFIDENTIALITY PROVIDE A DEFENCE OR PARTIAL/TOTAL EXCEPTION TO THE REQUIREMENT TO REPORT SUSPICIOUS TRANSACTIONS?
Yes, there are issues in relation to attorney-client privilege as regulated in the Code of Ethics of the Honduran Bar Association. This in relation to the reform of the law against money laundering that obligates notaries to report suspicious transactions as mentioned above. Since in Honduras Notaries are also licensed lawyers, an issue could potentially arise. This issue could be resolved, however, by distinguishing between notaries’ and lawyers’ duties, and applying the privilege only to the actions of the professional as a Lawyer and not as a Notary.
DOES LOCAL LAW PROVIDE ANY CRIMINAL AND/OR CIVIL INDEMNITY TO A LAWYER WHO HAS REPORTED A SUSPICIOUS TRANSACTION?
Not specifically. However, the General Attorneys Office may possibly grant plea bargains in the criminal context.
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, there are no specific regulations in this regard. Once the Notary reports the suspicious transaction the applicable offices would have to act in order to determine if there has been a violation. Only then would the Notary be able to determine if the transaction has been cleared or not.
IS THERE A TIPPING-OFF PROHIBITION? IF YES, PLEASE DESCRIBE.
There are no specific provisions in this regard. There could be an issue that arises concerning attorney-client privilege for which please see above.
DESCRIBE ANY RESTRICTIONS ON ACCEPTING A NEW CLIENT.
There would only be restrictions if the attorneys’ and/or law firms’ own internal policies stipulated as so.
There are no legal restrictions with the exception of representing counterparts in the same case in a judicial procedure.
ARE THERE ONGOING MONITORING REQUIREMENTS FOR EXISTING CLIENTS? IF YES, PLEASE DESCRIBE.
There no ongoing monitoring requirements except if specified the attorneys’ and/or law firms’ internal policies.
DESCRIBE ANY OTHER WAYS IN WHICH LAWYERS ARE AFFECTED BY ANTI-MONEY LAUNDERING LEGISLATION.
All lawyers, like any other Honduran Citizens, are obligated to follow the regulations established in the AML Law. Specifically, the law establishes that all natural or juristic persons that save, invest, handle loans, or make money transactions in Honduras are subject to the dispositions established in the Law.
HAVE LAWYERS IN YOUR JURISDICTION BEEN IMPLICATED IN MONEY LAUNDERING, INCLUDING ANY TYPE OF COMPLAINT, ARREST OR PROSECUTION?
Not to our knowledge.
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?
Not to our knowledge.
Information provided by :
Mr José Rafael Rivera Ferrari
Mr José Miguel Álvarez
Consortium Centro América Abogados – Honduras’ Office
Col. La estancia
Final del Bulevar Morazán.
Primera Calle, Edificio Torreo Consortium N.304
Tegucigalpa
Honduras
Tel 504-2211002
General Email: jrivera@consortiumlegal.com
General Website: www.consortiumlegal.com