General Law on Water Resources

General Law on Water Resources

General Law on Water Resources

Published on july 18 , 2022

Foto de Héctor Josué Deras Argueta

Héctor Josué Deras Argueta - Associate

On July 13, the General Law on Water Resources, approved by the Legislative Assembly on December 22, 2021 and published in the Official Gazette No. 8 Volume 434 of January 12, 2022, came into force. This Law is made up of 9 titles and 179 articles. Among the outstanding aspects of the Law is the recognition by the Salvadoran State of the human right to "water" and "sanitation", establishing that the former may not be privatized and seeking to ensure environmental sustainability for both present and future generations.

Another outstanding aspect is the creation of the Salvadoran Water Authority (ASA), in charge of regulating the quality of water resources, which will be formed mostly by representatives of different members of the Executive Branch.

The Law also establishes that any use other than domestic use must have the corresponding authorizations from the ASA for its exploitation; and consequently, a sanctioning regime is also developed, which will be in charge of a Sanctioning Tribunal, responsible for determining the type of infractions committed by individuals against the provisions regulated by the Law.

In other words, the creation of the Law seeks to guarantee the human right to water for the Salvadoran population, through the optimization of water resources and the creation of the ASA.

For more information about how this may affect your company, please contact our specialized team at bvaldez@bvaldezlaw.com  or  benjamin@bvaldezlaw.com
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Last June, the new Instructions for the Prevention, Detection and Control of Money Laundering, Financing of Terrorism and Financing of the Proliferation of Weapons of Mass Destruction, issued by the Attorney General's Office (FGR), under the framework of the Anti-Money Laundering Law (LCLDA), came into force. In its Article 2, the LCLDA establishes that every person must submit information to the FGR that allows demonstrating the licit origin of any transaction he/she carries out. This leads us to conclude, then, that every person must prepare the manual and internal policies for the implementation of a money laundering prevention system, and the continuous development of these.

What is the difference between the new Instructions and the prevention systems elaborated before it came into force? Article 4 of the Instructions requires individuals to apply a risk-based approach, which consists of identifying, assessing and understanding the risks of their sector and operation, and applying resources aimed at ensuring that they are effectively mitigated. Therefore, it is necessary to update the manuals and policies that companies had developed in the past, so that they have a risk-based approach and comply with the new provisions.

From the manuals prepared, it is necessary to comply with other obligations, among them, to develop due diligence and KYC policies to identify the final beneficiary of the company's business relationships, to detect and mitigate all unusual or suspicious transactions and report them to the FGR (not only cash transactions), to train employees, to keep a historical record of the files analyzed, and above all, to appoint a compliance officer.

Why is it important to comply? Article 8 of the LCLDA establishes that, if there is any encumbrance due to negligence, impertinence or ignorance of the directors or employees of the companies, there will be a sanction of two to four years in jail.

Therefore, as a Firm we recommend:


We offer you our services, in order to comply with these legal obligations, so that your company has the peace of mind and support of a money laundering prevention system.

For more information about how this may affect your company, please contact our specialized team at bvaldez@bvaldezlaw.com  or  benjamin@bvaldezlaw.com