Development, Investment and Rule of Law

Development, Investment and Rule of Law

Development, Investment and Rule of Law

Published on october 25 , 2022

Foto de Mario Concepción Martínez Sandoval

Mario Concepción Martínez Sandoval - Partner

We must start with the premise that, for development to exist, there must be investment, but on clear rules of the game, which translates into respect for the rule of law, which is what characterizes the Legal Certainty of a country, because every small, medium or substantial investment seeks to guarantee its return, even more so when it is foreign, precisely to avoid the political ups and downs that undermine their interests and the fundamental reasons are: firstly, they must know how to compete in the domestic market to guarantee results and secondly, that their investment does not go to the detriment of the norms and rules that were not foreseen at the time the decision was made to make their disbursement: firstly, they have to know how to compete in the domestic market to guarantee results and secondly, that their investment does not go to the detriment of norms and rules that were not foreseen at the time of making the decision to make their disbursement.

With these basic rules, we must pretend that our countries will be able to develop and generate a greater distribution of wealth, which is what a free market system and a democratic regime seek.

On the other hand, all development generates opportunities for the civilian community of our countries, regardless of their social or economic condition, since it will depend on the capacity, academic degree, initiative, intellect, vision and other attributes to hold the position to which they can access, precisely because the labor market will be diversified to make such selection, but on the basis that there is legal certainty so that investments can be made.

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