In Central America, Panama, and the Dominican Republic, current anti-money laundering laws and related offenses establish measures that, depending on the level of risk, must be implemented by natural or legal persons engaged in Non-Designated Financial Activities and Professions to prevent them from being used or directly or indirectly participating in money laundering crimes.
To this end, these laws impose obligations on companies, law firms, and professionals such as lawyers and notaries, among others, to report certain transactions and conduct due diligence on current and potential clients.
Sanctions for non-compliance with these laws include fines and imprisonment ranging from four to twenty years, depending on the type of involvement of the natural or legal person in the investigated crimes, such as participation, acquisition, complicity, and/or advisory roles.
Before the enactment of anti-money laundering and related crime prevention laws, these preventive measures applied exclusively to banks.
However, since banks are not the only entities handling money, it became necessary to also monitor transactions carried out by companies, law firms, and professionals such as lawyers and notaries, and to require them to implement measures to verify their clients, contractors, and suppliers, backed by all the necessary information.
Anti-money laundering laws and related regulations are among the legal provisions that all businesses, including law firms, must comply with.
For better compliance control, it is advisable that all applicable regulations be incorporated into a Compliance Program.
In this regard, a Compliance Program should include not only the company’s or law firm’s internal regulations—such as operational regulations, an information security manual, brand guidelines, and a code of ethics—but also external regulations that must be followed according to their activity, industry, or sector, the jurisdiction in which they operate, and any requirements imposed by private and/or public stakeholders with whom they conduct business.
It is crucial that the program outlines the necessary procedures to ensure compliance, that it is monitored, updated, and assigns responsible parties for its enforcement. Additionally, it must clearly establish action policies required to comply with all internal and external regulations while identifying risks associated with non-compliance and implementing mitigation strategies.
Global compliance legislation sets a clear path forward and raises awareness that adherence to all internal and external regulations by companies, law firms, and professionals such as lawyers and notaries not only ensures order but also enhances security and transparency in conducting business within the region.
For more information, contact us: info@central-law.com
Guadalupe Martínez Casas
Legal Services Manager
