Nine relevant aspects in the guide for preparing and sending ROS

por Jorge Andrés Cóbar | Nov 28, 2023 | RRSS |

The “Guide for the preparation and submission of Suspicious Transaction Reports (ROS)” is a detailed document that explains the process for reporting suspicious transactions in the financial field. The main ideas and summary of the guide are as follows:

  1. Introduction and Purpose: The guide, prepared by the Financial Investigation Unit (UIF), aims to prevent and detect activities associated with money laundering, financing of terrorism and financing the proliferation of weapons of mass destruction. [”]
  2. Objectives: Obligated subjects must complete the reporting form with detailed data about the people involved and the profile of the reported operation, complying with the legal requirements established by the corresponding law. [”]
  3. Scope of Application: The provisions of the guide apply to all obligated subjects specified in the law, excluding certain cases that must be reported in a special format. [”]
  4. Legal Basis: Reports must be made within a maximum period of five business days once irregular or suspicious operations have been identified, with the possibility of extending the period for another fifteen business days. The amount of the transactions does not affect this obligation. [”]
  5. Key Definitions: Key terms are defined such as UIF, FATF (Financial Action Task Force), LDA (Money and Asset Laundering), TF (Terrorist Financing), FPADM (Financing of the Proliferation of Weapons of Mass Destruction), ROS, Portal UIF, and Obligated Subjects. [”]
  6. Process to Complete the STR: The steps to complete the report in the UIF portal are detailed, including entering the portal, selecting the Suspicious Operation Report option, and generating a control number. [”]
  7. Details of the Suspicious Operation Report: The data that must be included in the report is specified, such as the name of the service, address, type of operation, amount of the transaction, origin or destination of the funds, and the reason for the report. [”]
  8. Files Annexed to the ROS: Detailed documentation must be attached such as customer profile, products and services, account statements, product contracts, analyzes performed, due diligence measures applied, and other relevant documents. [”]
  9. Specific Annexes: Detailed templates are included to report the concentration of active and passive accounts, account movements, loan and credit card payment structure, and details of the people who make payments and deposits. [”]

In summary, the guidance provides detailed instructions on how and what information reporting entities should report when identifying suspicious financial transactions, in order to comply with anti-money laundering and anti-terrorist financing regulations. If you need specialized advice, contact us!

Legal obligations to prevent money laundering for NGOs

por Jorge Andrés Cóbar | Nov 29, 2023 | RRSS | 

The “Guide for the prevention of money laundering and terrorist financing aimed at Non-Profit Organizations (NPOs)” presents several highlights, the most relevant elements of each section are summarized below:

  1. Introduction and LDA/FT/FPADM Prevention System: Explains the importance of prevention systems to mitigate the risks associated with money laundering, terrorist financing, and financing the proliferation of weapons of mass destruction. Highlights the need to identify and manage risks specific to each organization.
  2. International and National Regulatory Framework: Details the obligations derived from the recommendations of the Financial Action Task Force (FATF) and national legislation, emphasizing the need for prevention in NPOs; establishing that the 40 FATF recommendations are binding for our legislation.
  3. Tools for a Prevention System for NPOs:
  • Risk Analysis and Risk-Based Approach: Highlights the importance of the risk-based approach and the development of specific risk matrices for NPOs.
  • Risk Mitigation: Includes the appointment of a compliance officer, conducting due diligence on the client or counterparty, and reporting.
  • Self-regulation and Good Internal Governance: Addresses the need for manuals for the prevention of AML/TF/FPADM, program control and monitoring systems, and the promotion of a culture of integrity, training and transparency.

This guide is a comprehensive resource that provides NPOs with a clear understanding of their responsibilities and best practices in preventing money laundering and terrorist financing, following a risk-based approach and emphasizing the importance of regulatory compliance and good governance. internal.

It is necessary that your money and asset laundering risk prevention system be prepared by experts in the field and that it be a system created exclusively for your institution. At Bufete Cóbar we have the team and experience to advise, create and train its PLDA system in accordance with current regulations and under international standards. Contact us and do not risk administrative and/or criminal sanctions for deficiencies in compliance with money laundering legislation.

New perspectives on Legislation: How does the new Money and Asset Laundering Prevention Law affect your company?

By Jorge Andrés Cóbar | Dic 26, 2023 | RRSS | 

New Perspectives on Criminal Legislation: How Does It Affect Your Company?

At Bufete Cóbar, we are always attentive to legislative changes that may impact your company. With the current debate in Congress over a new law, it is crucial to understand how it could affect different sectors. This legislative proposal, still in the approval process, could exempt certain industries from the obligation to implement a comprehensive system for the Prevention of Money Laundering and Financing of Terrorism (MLD/FT) and the Prevention of Assets of Mass Destruction (PADM). Sectors that could be affected include:

  1. Travel agency
  2. Construction companies
  3. Private security companies and weapons importers
  4. Hotel sector
  5. Political parties
  6. Non-governmental organizations
  7. Pharmaceutical sector, including drugstores and pharmacy chains
  8. Associations, consortia and business unions
  9. Various private institutions and commercial companies

Although this law has not yet been approved by the legislative plenary session, it is important that companies within these sectors are prepared to adapt to potential changes. We recommend staying up to date with legislation and not completely discarding your current PLD policies, as there is always the possibility of future amendments.

At Bufete Cóbar, we are committed to keeping you informed and advising you on the changes that this Law will make. If your business falls into any of these sectors, or if you have questions about how these changes might affect you, please feel free to contact us. We are here to help you navigate this ever-evolving legal environment and ensure your business is prepared for any changes.

New reform to the Commercial Code: A vision towards the future of check truncation

By Jorge Andrés Cóbar | May, 13 2024 | RRSS |

This legislative change, embodied in Decree No. 972, seeks to adapt commercial operations to the digital era through the process known as “check truncation.”

Details of the Reform
The reform to the Commercial Code incorporates Section “F”, specifically articles 838-A to 838-E, which establish the legal framework for the truncation of checks. This procedure reduces or eliminates the physical exchange of checks, replacing them with electronic records that contain the image of the check. This change not only promises to speed up the process of clearing and releasing funds but also increase the security and efficiency of commercial transactions.

The Central Reserve Bank of El Salvador will play a crucial role, regulating and managing the check clearing process and other payment systems. In addition, the entity will be in charge of issuing regulations that establish the characteristics and security measures of both physical checks and their digital equivalents.

Advantages of the Reform
Implementing check truncation offers multiple advantages:

  • Operational Efficiency: Significant reduction in check processing times.
  • Improved Security: Minimization of risks associated with the physical handling of checks, such as fraud or loss.
  • Quick Access to Funds: Expediting the availability of funds for beneficiaries.
  • Sustainability: Reduction in the use of paper, contributing to the country’s ecological initiatives.

Sanctions for Non-Compliance
The new legal framework also establishes a sanctions regime for institutions that fail to comply with the stipulated procedures. These violations could result in fines ranging from 100 to 1,000 minimum wages, thus ensuring compliance and integrity of the system.

Transitory dispositions
Financial institutions have a period of 90 days after the publication of the relevant regulations to adapt their internal processes to the new system. After this period, it is expected that all checks will be processed under the new regulated format.

The reform came into effect eight days after its publication in the Official Gazette, marking a milestone in the modernization of payment systems and supporting the vision of a more innovative and economically fair El Salvador.

For more details, financial institutions and the general public can refer to the full text of the decree and regulations issued by the Central Reserve Bank of El Salvador.

This change not only reflects a step forward in the technological adaptation of the Salvadoran financial system but also underlines the State’s commitment to guaranteeing and facilitating commercial operations, in accordance with the principles of social justice and economic benefit for all its inhabitants.