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COSTA RICA |
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Banks Face
Huge Fines For Non Compliance Of Money
Laundering Law
The reason for the exaggerated requirements
by banks in Costa Rica for requirements to
open an account and for existing customers
to, in some cases, to completely reapply for
their existing accounts is based on the Ley
de Psicotrópicos, to avoid money laundering
from drug trafficking, imposing heavy fines
on institutions that do not comply.
The Banco de Costa Rica (BCR) and the Banco
Nacional (BN) are two banks owned by the
state that have been militant in forcing
customers to update their account
information or face the freezing or closure
of their account, as has been reported, if
they do not comply.
Since April of this year, banks have
implemented new anti money laundering rules
and regulations under the program “Conozca a
su cliente” (know your client) and face a
fine of up to 1% of their assets, up from
0.01% before the new law, which can be
"disproportionate and irrational" for those
institutions that do not comply.
In the case of the Banco Nacional, the fine
could amount to as much as us$5 million
dollars.
In the case of the Banco de Costa Rica, they
are strict in the efforts to comply. New
customers have to provide a series of
documents with clearly establishes the
source of the funds to be deposited into the
account. Existing customers have to keep
their personal information (address,
telephone number, business activity or
employment, among other things) updated at
all times.
In some cases, the bank has cut off
customers from access to their accounts for
lack of all or any of the foregoing,
claiming it is their duty in the effort to
combat money laundering.
On the other hand, banks who are excessive
in their efforts can also be penalized.
Cinthya Zapata director of the Comisión de
Apoyo al Consumidor, said that overzealous
banks can face a legal process and fines
under the Ley de Protección al Ciudadano
(citizen protection law).
zapata says that some banks have been
violating the Ley de Protección al Ciudadano
law requiring customers to provide
information by their call centre staff or at
the teller windows, negatively affecting
consumers.
The director added that violations occur
when the banks are not crystal clear in
their publicity in which it requires
customers to update their account
information.
"If there is suspicious activity in an
account, the customer should have the
opportunity to demonstrate the contrary or
permitted the right to defend oneself", said
Zapata.
The president of the Consumidores de Costa
Rica, Eric Ulate, reinforces the words of
Zapata, saying that at times the banks leave
their customers confused at what documents
are required and in some cases have been
overly stringent on requiring additional and
alternate documents.
Ulate added that in some cases where a
employment record or a utility bill is not
available, banks have required items like
marriage certificates or rental agreements.
The banks are not particularly happy with
the situation either, facing sanctions by
the Superintendencia General de Entidades
Financeiras (Sugef) if one or more documents
is missing from the customer file, leading
to a cumbersome process and in some cases a
source of frustration for both the bank and
the customers. |
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