Nicaragua
Last updated: 02/06/2009
CENTRAL AUTHORITY FOR REPORTING
Comisión de Análisis Financiero (Commission of Financial Analysis).
OTHER ANTI-MONEY LAUNDERING REGULATOR(S)
Superintendence on Banks, Non-banking Financial Institutions and Financial Groups.
ARE LAWYERS COVERED BY ANTI-MONEY LAUNDERING LEGISLATION?
There is no anti-money laundering legislation applicable particularly to lawyers, but the Resolution on the Prevention of Money Laundering, Goods or Assets and Financing to Terrorism qualifies lawyers that render certain services as high-risk customers. Such services include: real estate transactions, management of funds, creation of corporations.
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?
Yes, all individuals are obliged to comply with local law.
LIST ANY MONEY LAUNDERING GUIDANCE FOR LAWYERS (FOR EXAMPLE, LAW SOCIETY OR BAR ASSOCIATION GUIDELINES) CURRENTLY IN PLACE.
There are no specific guidelines for lawyers.
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.
The law doesn’t establish an obligation for lawyers to perform client due diligence. Nonetheless firms usually execute due diligence as part of their corporate practice.
Banks and other financial institutions have implemented the policy of “Due diligence for 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?
Yes. The Resolution on the Prevention of Money Laundering, Goods or Assets and Financing to Terrorism has classified some clients such as Politically Exposed Persons, Lawyers, Accountants and Persons domiciled abroad as high-risk for banks.
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.
As explained before, lawyers are not required by law to perform due diligence on their clients. However, all individuals can perform client due diligence themselves or via a third party.
WHEN IS A LAWYER UNDER AN OBLIGATION TO REPORT SUSPICIOUS TRANSACTIONS?
The law does not state an obligation on lawyers to report suspicious transactions.
DOES ATTORNEY/CLIENT PRIVILEGE AND/OR DUTIES OF CONFIDENTIALITY PROVIDE A DEFENCE OR PARTIAL/TOTAL EXCEPTION TO THE REQUIREMENT TO REPORT SUSPICIOUS TRANSACTIONS?
N/A.
DOES LOCAL LAW PROVIDE ANY CRIMINAL AND/OR CIVIL INDEMNITY TO A LAWYER WHO HAS REPORTED A SUSPICIOUS TRANSACTION?
No.
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?
This is not regulated by law.
IS THERE A TIPPING-OFF PROHIBITION? IF YES, PLEASE DESCRIBE.
No.
DESCRIBE ANY RESTRICTIONS ON ACCEPTING A NEW CLIENT.
There are no particular restrictions for lawyers regarding the AML framework.
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?
Some lawyers have been implicated in money laundering because they have participated directly in illegal acts.
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?
Yes. The FATF has conducted evaluations of Nicaragua. We are not aware of any findings yet.
Information provided by:
Consortium Centro América Abogados – Nicaragua’s Office
Mr Rodrigo Taboada
Del Hospital Militar
1 Cuadra al Lago
Managua
Nicaragua
Website: www.consortiumlegal.com
General Email: nicaragua@consortiumlegal.com