Guatemala | First Look at New Anti-Money Laundering Bill
Juan Carlos Batres, Associate at ARIAS Guatemala and expert in corporate law, presents this article on the most relevant points and the main implications of bill number 6593 presented by the Executive Branch; which provides for the approval of the Comprehensive Law Against the Laundering of Money or Other Assets and the Financing of Terrorism.
On July 28, 2025, the initiative was presented to the Congress of the Republic that provides for the approval of the Comprehensive Law against the Laundering of Money or Other Assets and the Financing of Terrorism (hereinafter, the "Comprehensive Law Initiative" or "Comprehensive Law"), which seeks to strengthen the system for the prevention of these crimes; after the support of multiple State agencies and international organizations, in accordance with international standards and recommendations of the Financial Action Task Force (FATF). If it enters into force, the Comprehensive Law would repeal the current Law Against Money Laundering and Other Assets and the Law to Prevent and Suppress the Financing of Terrorism, seeking to consolidate and strengthen this legal framework. In addition, this Comprehensive Law would reform key provisions of the Criminal Code, Notarial Code and Commercial Code. This article seeks to address the key points of this initiative and close with a conclusion as to the possible implications that the entry into force of the Comprehensive Law Against Money Laundering or Other Assets and the Financing of Terrorism would have.
1. Expansion of the concept of "Obligated Person" (Reporting Entities)
As for the concept of "Obligated Person", as in the current Law Against Money Laundering and Other Assets, the Comprehensive Law is not limited to banks and financial institutions. However, this Comprehensive Law establishes a list that includes several activities that were not included, or were regulated differently, in the previous law; Including:
a) Insurers engaged in the contracting of life insurance and surety insurance;
b) Pawnshops;
c) Virtual Asset Service Providers;
d) Lawyers and notaries, in specific cases; and
e) Purchase and sale or disposal of shares or other forms of participation of legal persons.
It is worth mentioning that, in accordance with the initiative, the regulations of the Comprehensive Law, in the event of its entry into force, would contain specific regulations regarding some of these new inclusions, specifically in cases in which a notary authorizes such acts. It is important to note that, in the new list of Obligated Persons, non-profit organizations that receive or send funds from or abroad are not included, which are part of the list in the current regulation. Finally, the new Comprehensive Law would give the Superintendency of Banks (SIB) the power to incorporate new activities into the list that confer the status of Obligated Persons, following the process established in the law.
2. Creation of a new governing body
If the Comprehensive Law enters into force, the National Council for the Coordination of Efforts against the Laundering of Money or Other Assets, the Financing of Terrorism and the Financing of the Proliferation of Weapons of Mass Destruction in Guatemala (CONCLAFT) would be created. The Council would have, among others, the powers to coordinate efforts and cooperation among the State institutions that participate in the legal structure for the prevention and suppression of the laundering of money or other assets and the financing of terrorism, with the purpose of contributing to the effective compliance with the new Comprehensive Law and its regulations, as well as the international conventions and treaties related to the matter, within a national system of prevention and repression of such acts, respecting the legal competence and functions of each institution.
According to the Initiative, some of the most important attributions of CONCLAFT are:
a) Identify, assess, and understand the risks of crimes associated with the Comprehensive Law in order to coordinate the actions necessary for their mitigation.
b) Analyze situations and threats that require concrete measures to mitigate money laundering and terrorist financing.
c) Coordinate strategies, policies, mechanisms, and activities for the prevention of the financing of the proliferation of weapons of mass destruction.
Finally, it is important to note that the Vice President of the Republic is the one who will preside over and coordinate CONCLAFT and it will be integrated, among others, by the Superintendent of Tax Administration, the Superintendent of Banks and the Ministers of Foreign Affairs, Interior, National Defense, Economy and Energy and Mines.
3. Implementation of a new methodology for risk assessmentAnother novelty of the Comprehensive Law is the risk-based approach on the part of the obligated persons in terms of Money Laundering, Financing of Terrorism and the Financing of the Proliferation of Weapons of Mass Destruction (hereinafter, "LD/FT/FPWMD"). The law defines risk-based management as the comprehensive process by which Obligated Persons must identify, evaluate and mitigate the level of ML/FT/FPWMD risk to which they are exposed, in such a way that they allocate their resources and establish suitable measures, according to the risks identified. It is also important to emphasize that this risk management must be proportional to the activities of the Obligated Person, that is, it is necessary to analyze the nature, volume and complexity of their activities so that the allocation of resources and the measures they take are suitable. In this regard, Obligated Persons must conduct self-assessments based on their business models and relationships with their clients to implement the necessary policies to mitigate any ML/FT/FPWMD risk. Finally, this new implementation entails that Obligated Persons must carry out the stages of the ML/FT/FPWMD risk management process prior to the launch of new goods, products and/or services or prior to the implementation of new technologies or business practices.
4. Expansion of sanctions and criminal liability
Another point that is important to take into consideration is the modification of the crime of laundering money or other assets; financing of terrorism; and racking. Specifically with regard to the crime of laundering of money or other assets, the Initiative provides that this crime is also committed by anyone who, by reason of his or her position, employment, trade or profession, permits or facilitates the carrying out of any transaction knowing that the property or money that is the subject of the transaction originates from the commission of a crime. Finally, the criminal liability of legal persons is reinforced by virtue of the fact that entities will be criminally liable (their legal personality may even be cancelled in certain cases) when the commission of the crime of money laundering originates from a lack of control or supervision and the consequences of the crime are favorable to the legal person.
Taking into account the points mentioned above, it is possible to conclude that the entry into force of the Comprehensive Law would imply a series of changes of general observance in response to this new regulation that aims to comply with international standards and prevent the commission of related crimes. The Initiative introduces a new method for risk assessment, reinforces the concept of Obligated Person and expands the scope of crimes. Finally, this new legal framework, by introducing a new governing body in charge of the matter, would change the dynamics within the State with respect to the fight against money laundering or other assets and the financing of terrorism. In view of the above, individuals and legal entities must be aware of the content of the Initiative, not only in the scenario that they can be framed as obligated persons, but also to avoid the commission of any of the crimes that would entail a sanction in accordance with the law.
The information provided by ARIAS® is presented for informational purposes only. This information is not legal advice and is not intended to create, and does not constitute, an attorney-client relationship. Readers should not act upon this information without seeking advice from professional advisers.