Norm on the Prevention of Money Laundering and Other Assets (REPEALED)

Norm on the Prevention of Money Laundering and Other Assets Superintendence of Banks and Other Financial Institutions – Nicaragua

NORM ON THE PREVENTION OF
MONEY LAUNDERING AND OTHER ASSETS
(Resolution: CD-SIBOIF-197-2-MAR01-2002)1

The Board of Directors of the Superintendence of Banks and Other Financial Institutions;

CONSIDERING

I
That activities related to money laundering and assets from illicit activities imply a risk for the National Financial System, as well as for the security of the nation in its institutional stability and public order.

II
That as a consequence it is necessary to issue prudential norms that require the integration of effective mechanisms for the prevention of money laundering and assets.

THEREFORE

In accordance with the above considerations and based on Article 36 of Law No. 285: “Law on Narcotics, Psychotropic Substances and other Controlled Substances, Money Laundering and Assets from illicit activities” published in La Gaceta No. 69 on April 15, 1999.

RESOLVES:

CD-SIBOIF-197-2-MAR01-2002

APPROVE THE NORM ON THE PREVENTION OF MONEY LAUNDERING AND OTHER ASSETS, APPLICABLE TO ALL FINANCIAL INSTITUTIONS UNDER THE SUPERVISION OF THE SUPERINTENDENCE OF BANKS, IN ACCORDANCE WITH THE FOLLOWING PROVISIONS:

CHAPTER I
GENERAL PROVISIONS

Art. 1 SCOPE
The provisions of this regulation are applicable to all Financial Institutions under the supervision of the Superintendence of Banks and Other Financial Institutions.

1 Resolution of the Board of Directors: CD-SIBOIF-197-2-MAR01-2002 published in La Gaceta, Official Diary, No. 71 on April 18, 2002. This presentation contains the reforms that the Norm has undergone through the Resolutions: CD-SIBOIF-220-1-SEP11-2002 published in La Gaceta, Official Diary, No. 185 on October 1, 2002; CD-SIBOIF-231-1-DIC20-2002 published in La Gaceta, Official Diary, No. 20 on January 29, 2003, CD-SIBOIF-244-1-MAY29-2003 published in La Gaceta, Official Diary, No. 115 on June 20, 2003 and CD-SIBOIF-291-1-ABRI14-2004 published in La Gaceta, Official Diary, No. 81 on April 27, 2004.

Norm on the Prevention of Money Laundering and Other Assets Superintendence of Banks and Other Financial Institutions – Nicaragua

Art. 2 DEFINITIONS
For the purposes of this norm, the following are understood:

a) Financial Institution – All institutions subject to the authorization, supervision, surveillance, and audit of the Superintendence of Banks and Other Financial Institutions.

b) Person – All natural or legal entities capable of acquiring rights and contracting obligations.

c) Independent Auditor – An external auditor not related to the institution or an internal auditor who does not have the assignment of compliance officer and who reports directly to the Board of Directors of the institution.

d) Monetary Instrument – Banknotes and coins of national or foreign denomination, banker’s checks, traveler’s checks, bearer checks, bearer securities, negotiable instruments to bearer, bearer titles or nominative titles endorsed to bearer.

e) Money Laundering – For the purposes of this Norm, wherever Money Laundering is read, it shall also be understood as other Assets.

f) Multiple or Fractionated Transaction – For the purposes of these norms, multiple or fractionated transactions are considered those transactions that, with the knowledge of the financial institution, are made for the benefit of the same legal or natural person and where the transactions are the result of the sum total of cash income or cash expenditures during the same working day.

g) Identification Means (with legal and indubitable document) – For the purposes of these norms, the following are considered identification means (with legal and indubitable document): i) For Nicaraguan persons, the ID card issued by the Supreme Electoral Council; ii) For resident foreign persons, the valid residence ID card issued by the General Directorate of Migration and Foreigners and passport; iii) For non-resident foreign persons, the passport, with a valid entry visa or CA-4 documentation (in the case of Central Americans).

h) Cash Transaction – For the purposes of these norms, cash transactions are considered those transactions involving the physical transfer of banknotes or coins from one person to another. This does not include fund transfers by means of bank checks, banker’s checks, electronic transfers, or cable, payment orders, or other financial monetary instruments that do not involve the physical transfer of cash currency.

i) Originating Financial Institution – The financial institution that receives the payment order or transfer from a person who is not a national or foreign financial institution.

j) Intermediary Financial Institution – The financial institution that participates in the transfer of funds but is neither the originator nor the beneficiary.

k) Beneficiary Financial Institution – The financial institution that pays or credits the payment order or transfer to the beneficiary person who is not a national or foreign financial institution.

l) Originating Person – The person who sends or supplies the payment order to the originating financial institution at the beginning of a funds transfer operation process.

m) Beneficiary Person – The person who receives the funds from the financial institution at the end of a funds transfer operation process.

n) Established Client – The person who maintains a contractual relationship with the financial institution, including the maintenance of deposit accounts, loans, investment accounts, or other types of assets. As well as contractual relationships arising from trust operations.

ñ) Day – Calendar day.

o) High-Risk Clients – Persons, natural or legal, national or foreign, who maintain balances in the financial institution exceeding five hundred thousand United States dollars (US$500,000.00) or their equivalent in national currency and meet any of the following characteristics:

Clients domiciled abroad;
Clients domiciled in tax havens;
Clients domiciled in countries or territories not cooperating in the fight against capital laundering according to the FATF;
Accounts of officials of foreign governments;
Trust accounts;
Legal entity with bearer shares; and
Accounts with high activity.

Norm on the Prevention of Money Laundering and Other Assets Superintendence of Banks and Other Financial Institutions – Nicaragua

CHAPTER II
MONEY LAUNDERING PREVENTION PROGRAM

Art. 3 CRITERIA FOR FORMING THE PROGRAM
Every financial institution must implement a money laundering prevention control program which will be composed, at minimum, of the following:

a) Formulation and implementation of internal policies and procedures

Every financial institution must formulate and implement policies that integrate the obligations established for such institutions by the legislation and regulation governing the crime of money laundering.
Every financial institution must formulate and implement specific internal procedures for the institution that ensure compliance with the obligations collected in these norms. Additionally, that generally include prevention measures and monitoring programs to avoid that the institution is used for illicit purposes linked to money laundering.
Internal policies and procedures must be duly approved by the board of directors of the institution.
Internal policies and procedures must be reviewed and updated according to regulatory changes and the presence of new illicit schemes found by financial entities or communicated by the Superintendence.

b) Designation of an official responsible for the implementation, training, and follow-up of the program

1) Every financial institution must appoint an official with management-level authority who will be designated as the compliance officer.

2) The compliance officer will be responsible for the following functions:

i. Review and implement internal operating procedures;
ii. Act on behalf of the financial institution as a liaison with regulatory bodies and public agencies with competence in this matter;
iii. Ensure fluid communication with all offices of the institution in order to carry out a centralized effort;
iv. Review and remit reports of foreign exchange or cash transactions of clients;
v. Coordinate the training program in this matter of all relevant employees of the institution;
vi. Formulate and implement an account monitoring program in order to prevent the institution from being used for illicit purposes;
vii. Collect, analyze, prepare, and remit individual reports of unusual activities;
viii. Verify that within the financial institution there exist and are applied reasonable procedures to verify personal, labor, criminal, and patrimonial backgrounds to ensure the integrity of personnel working in the financial institution; and
ix. Other functions that the Board of Directors considers necessary or any other function that the Superintendence determines.

c) Formulation of a permanent training program for relevant personnel

1) Every financial institution must implement a permanent training program in this matter.

2) The training program must cover every aspect of the legislation regulating the crime of money laundering and the obligations collected in these norms.

3) The training program must cover all operational personnel and personnel who have contact with the institution's clientele.

4) The training program must be continuous and current, incorporate new developments in money laundering schemes, include money laundering cases, and methods to detect illicit activities. The program will include both examples supplied by the Superintendence and those provided by the institution itself based on its own experience.

5) All training records must be maintained for a period of three years, specifically the content of the training programs and personnel attendance.

d) Code of Conduct

All employees, officials, shareholders, directors, and any authorized representative of the financial institution must commit to putting into practice a code of conduct that meets the policies adopted by the financial institution for the prevention of money laundering and other assets. Said code must be approved by the board of directors of the institution.

e) Independent audit to verify the effectiveness and compliance of the program

1) The anti-money laundering program must be reviewed or audited annually by the Independent Auditor to verify its effectiveness and compliance.

2) The review or audit must analyze, among other issues, the effectiveness and results achieved by the program developed by the audited institution.

CHAPTER III
CLIENT IDENTIFICATION

Art. 4 MANDATORY IDENTIFICATION
Financial institutions must identify clients who perform any type of transaction at the institution.
The identification requirement is exempted for transactions related to utility payments (water, telephone, electricity), payments to the Treasury, Customs, Central Government, and Municipalities for amounts less than US$10,000.00 (ten thousand United States dollars) or their equivalent in national currency. The previous exception does not exempt said clients from the application of the provisions established in Chapter VI “Requirement of Systematic Communication of Cash Transactions whose amount exceeds US$10,000.00 or their equivalent in national currency” and in Chapter VII “Individual Communication of Unusual Activities.”

Art. 5 VERIFICATION MEASURES
Every financial institution must establish verification programs for the knowledge of all clients that contain at minimum the following:

a) Reasonable measures to obtain and conserve information that determine the true identity of all persons in whose benefit an account is opened and/or make use of services at the institution. As well as persons who have authorized signatures on said accounts.

b) Standards and controls to prevent the opening and functioning of anonymous accounts or accounts that appear under fictitious or inaccurate names.

c) Reasonable measures within the legal framework to obtain adequate references on clients as established in article 6, subsection f) of this norm.

d) Reasonable measures within the legal framework to verify the purpose or reason for opening the relationship with the client.

e) Reasonable measures to verify the origin of patrimony and funds deposited by the client.

f) Reasonable measures within the legal framework to determine the link between accounts that do not correspond to the normal profile of clients.

g) Measures to register services received by the same client.

h) The approval of the acceptance of account opening by authorized person.

i) Keep client information updated.

For high-risk clients, the following additional verification measures will be required:

Verify the information supplied by the client through consultations with risk rating companies or risk centers, public or private, or by other means; and
If the case warrants it, conduct on-site verifications of the establishment of the legal person or of the workplace or business center, if it were a natural person.

Art. 6 CLIENT IDENTIFICATION
At the moment of proceeding to the opening of a contractual relationship of operations, whether in active, passive, or trust operations, the institution must require the originals and retain copies of documentation that includes at minimum:

a) Identification means (with legal and indubitable document) for natural persons.

b) Deed of Constitution and Bylaws registered in the competent registry, in which the purpose or social object of the legal person is appreciated.

c) Certification of Minutes of the members of the Board of Directors of the entity.

d) Power of Attorney or Certification of Board of Directors Minutes demonstrating the faculty to represent the entity, as well as identification means (with legal and indubitable document) of the natural person accredited as such by said legal person.

e) RUC Number (Taxpayer Registry Number).

f) Bank, Commercial, or Personal References.

g) Registration as a merchant in the competent Registry.

h) Registration as a cooperative in the competent Registry.

i) Registration as an association, foundation, federation, or confederation in the competent Registry.

j) Registration as a union, federation, confederation, or central union in the competent Registry.

k) Financial Statements of the legal person, national or foreign, if it is considered a high-risk client.

l) Others that each financial institution determines, according to the case.

For the case of existing clients upon the entry into force of the norm and accounts whose holder is a governmental entity, it will not be necessary to request the documentation specified in subsection f) of this article.

To comply with said subsection f), payroll payment accounts will require only the reference letter from the employer. Accounts of natural persons residing in Nicaragua, with monthly balances less than US$500.00 (five hundred United States dollars), or their equivalent in national currency, will require only a reference letter; furthermore, the bank must implement systems that ensure such accounts cannot receive deposits greater than that limit without authorization from the manager of the receiving office of the deposit.

To comply with subsection f), in cases when the contractual relationship of operations with the client is limited to active operations, the financial institution must require the client to detail the references in the loan application format and verify them through acceptable means, such as telephone, fax, consultation with the Risk Center of the Superintendence, and a record of its execution must be left from the act of verification.

For the case of accounts whose holder is a foreign legal person not domiciled in Nicaragua, only the documentation specified in items a), b), c), d), f), and k) will be required. The documentation specified in subsections b) “Deed of Constitution and Bylaws, in which the purpose or social object of the legal person is appreciated,” c) “Certification of Minutes of the members of the Board of Directors of the entity,” and d) “Power of Attorney or Certification of Board of Directors Minutes demonstrating the faculty to represent the entity” must be duly authenticated by the corresponding authority.

Art. 7 INFORMATION AND DOCUMENTATION OF DEBTORS At the time of performing loan, credit, or asset operations, the financial institution will demand and retain, in addition to what is required by this norm, the minimum information and documentation required under the Prudential Regulation on the Evaluation and Classification of Assets.

Art. 8 CREATION OF CLIENT PROFILE
The institution must formulate and maintain a “Client Profile,” according to Annex C attached to this Norm, which forms part of it, that collects the set of information contained in articles 6 to 7 and the following:

a) Name of the client and account numbers maintained at the institution.

b) Address and telephone of the home and workplace.

c) Occupation, profession, and data about the workplace.

d) Main economic activity in case of legal person.

e) Annual income or approximate sales volume obtained or generated by the client, whether natural or legal person.

f) Normal expected activity of each client, by number of transactions, volume, and average balances, among other criteria.

For accounts whose holder is a foreign legal person not domiciled in Nicaragua, in addition to the requirements established in the previous subsections, the financial institution must require the following:

Identification of shareholders, directors, and administrators of the legal person;
Detailed description of the economic activity including at minimum: type of operations, profile of its operations (retail or wholesale), identification of geographic regions where it operates, Identity and domicile of its major clients and suppliers; and
Detailed description of the profile of operations to be carried out in Nicaragua.

When possible, keep the profile in an information system which enables the financial institution to automatically compare the profile with the subsequent operational activity of the client. This format may be modified when, in its implementation, the Superintendent considers it necessary.

In cases when the contractual relationship of operations with the client is limited to active operations and the financial institution maintains internal forms that collect the set of minimum information required in articles 6, 7, and 8 of this norm, it will not be necessary to complete the client profile annexed in this norm.

Art. 9 CONSERVATION OF INFORMATION AND SUPPORT DOCUMENTATION Every financial institution must conserve or retain the client profile with all support documentation for a period of five (5) years after closing the relationship.

Art. 10 AVAILABILITY OF INFORMATION
Financial institutions will have available all information, including the client profile and documentation contemplated in articles 6 to 8 of this norm, at the request of the Superintendence or by provision dictated according to the Law issued by competent judicial authorities within the respective criminal process.

CHAPTER IV
IDENTIFICATION, REGISTRATION, AND DATA EXTRACTION REQUIREMENTS IN CASES OF SALE OF CONSIGNMENT INSTRUMENTS

Art. 11 DATA EXTRACTION SYSTEM
Every financial institution must maintain a system (manual, computerized, or by other means) that enables the extraction of data relative to all transactions involving the sale of consignment instruments, such as banker’s checks, ATM checks, traveler’s checks, and others similar, by means of the use or exchange of cash currency.

Art. 12 IDENTIFICATION REQUIREMENT
The information to be registered in each transaction of sale of consignment instruments by means of the use or exchange in cash will be at minimum the following:

Norm for the Prevention of Money Laundering and Other Assets Superintendence of Banks and Other Financial Institutions – Nicaragua

a) The name and address of the person managing the transaction and of any other person on whose behalf or for whose benefit the transaction is carried out. b) The means of identification (with legal and indubitable document) of the person managing the transaction. c) The account number, if carried out by a resident client. d) The description and identification of the instrument sold.

Art. 13 RECORD RETENTION
The financial institution shall retain these records for a period of five (5) years.

CHAPTER V
IDENTIFICATION, RECORDING AND DATA EXTRACTION REQUIREMENTS IN CASES OF FUND TRANSFERS

Art. 14 DATA EXTRACTION SYSTEM
Every financial institution must maintain a system (manual, computerized or by other means) that enables the extraction of data relating to all transactions involving fund transfers or internal and external payment orders (via electronic means, facsimile, or by other means).

Art. 15 IDENTIFICATION REQUIREMENT
The information to be recorded in each transaction carried out and transmitted by the Originating or Beneficiary financial institution, as applicable, shall be at least the following:
a) Name and address of the person originating the payment order or transfer. b) The means of identification (with legal and indubitable document) of the person managing the transaction. c) Account number, if the funds are debited from an account at the financial institution. d) Amount of the payment order or transfer. e) The date on which the payment order or transfer was carried out. f) Instructions included in the payment order or transfer received from the person originating it.

g) Identity of the beneficiary financial institution; and h) Name, address, and account number of the beneficiary person. i) If the funds are not deposited into the beneficiary person's account but are disbursed in cash, cashier's check, manager's check, or by means of another monetary instrument, the beneficiary financial institution must identify the form of payment made. j) If the beneficiary person is not a resident client of the beneficiary financial institution, the latter must retain the name, address, and identification (with legal and indubitable document) of the beneficiary.

Art. 16 RECORD RETENTION
Every financial institution must retain this information or records for a period of five (5) years.

CHAPTER VI
SYSTEMATIC COMMUNICATION OF CASH TRANSACTIONS EXCEEDING US$10,000.00 OR THE EQUIVALENT IN NATIONAL CURRENCY

Art. 17 MANDATORY REPORTING
Every financial institution must report to the Superintendence all individual transactions, including multiple or split transactions, in the concept of deposits, withdrawals, currency exchanges, purchases or sales of securities or other financial transactions or other payments or transfers by means of, or to, that financial institution, which involve the exchange of currency in cash and which in one day exceed US$10,000.00 or its equivalent in national currency.

Art. 18 EXCEPTIONS a) Financial institutions, based on their good judgment, may exempt certain clients from this registration provided they meet each of the following points:
1) They have been clients for at least twelve months in the financial system, of which at least six months have been maintained at the granting financial institution;
2) They carry out cash transactions with a certain frequency that exceed the minimum amounts previously stated and that such activity is compatible with the business activity to which they are dedicated. For such purposes, there must be full knowledge of the client and their activities, possession of all required documentation including the client profile, and a visit to verify said client profile;
3) They have domicile in the country; and
4) They are not clients dedicated to the following businesses: exchange houses, companies dedicated to fund transfers or remittances, casinos or gambling, lenders, savings and loan cooperatives, Non-Governmental Organizations (NGOs) dedicated to financial activities, pawnshops, and any other that the Superintendent considers pertinent.
b) In the preparation of the list of clients exempted from the registration of cash transactions, the following procedures must be applied:
1) Design an appropriate form or computerized record that allows documenting the authorization process and periodic review of the criteria considered in the exemption of each client, maintaining a centralized file thereof that will be available to the Superintendence;
2) Evaluate individually the exposure and risk of the exempted clients, taking into account the purposes described in this norm and leaving evidence thereof in the aforementioned form or record. The authorization must include at least two favorable and independent opinions, one of which must correspond to the official having direct contact with the client. The compliance official must review the evaluations made; and
3) Institutions must permanently evaluate the exposure and risk of exempted clients, and at least semi-annually, conduct a formal review of the list of exempted clients to verify if they continue to satisfy the criteria that allowed their exemption, leaving evidence and comments thereof in the corresponding form or record.

Art. 19 FORMAT
These transactions will be reported to the Superintendence by magnetic or electronic means, according to Annex 1, Instructions Manual, which becomes part of this norm. This instructions manual and its annexes may be modified when, in its implementation, the Superintendent considers it necessary. a) Individual Transactions: If it is an individual transaction, the financial institution must report the following information:

Date of realization of the transaction;
Office or branch where the transaction was carried out;
Information on the manager of the transaction (names, surnames, address, type and number of identity and nationality);
Information on the beneficiary (if it is a person different from the manager) of the transaction (names, surnames, address, type and number of identity and nationality);
Amount of the transaction in dollars; (when transactions are in cordobas, their equivalent in dollars at the official exchange rate.)
Type of transaction; and
Number of account(s) affected, if applicable.
b) Multiple or Split Transactions: Financial institutions must implement the necessary systems to detect and identify multiple or split transactions. When they have knowledge that it is this type of transaction, they must report it with the same information required for individual transactions. When the financial institution does not have knowledge if the manager carries out the transaction on their own behalf or on behalf of a third party (checks with more than one endorsement, exchange of checks carried out by a natural person on behalf of a legal entity, currency exchange, etc.), the manager of the transaction will be considered as the beneficiary. If the financial institution does not have knowledge of the name and address of the manager and beneficiary of the transaction, it may omit said information.

Art. 20 REPORTING DEADLINE
The transactions indicated in Article 17 that occur in a month will be reported to the Superintendence within the first ten (10) calendar days of the following month, starting from the last day of the month.

Art. 21 IDENTIFICATION REQUIREMENTS
Every person carrying out a transaction, for their own benefit or for the benefit of another person, considered under the parameters of being reportable, must be appropriately identified (with legal and indubitable document).

Art. 22 RECORD RETENTION
Every financial institution must retain a copy of the "Systematic Communication of Cash Transactions" and a record of these reports, for a period of five (5) years.

Art. 23 COMMUNICATION OF UNUSUAL TRANSACTIONS
The "Systematic Communication of Cash Transactions" should not be used to report unusual cash transaction activities exceeding US$10,000.00. For the purpose of reporting unusual activities, financial institutions must use the "Individual Report of Unusual Activity" format established under this norm.

CHAPTER VII
INDIVIDUAL COMMUNICATION OF UNUSUAL ACTIVITIES

Art. 24 MANDATORY REPORTING
Every financial institution must report to the Superintendence any transaction, regardless of its amount, carried out or attempted to be carried out by, through, or by means of the financial institution in foreign currency or other types of assets, provided that the financial institution has knowledge, suspicion, or grounds to suspect that:
a) The transaction involves foreign currency derived from illicit activities or has as intention or was carried out with the purpose of hiding or legitimizing foreign currency or other assets derived from suspicious activities (including, without limitation, the ownership, nature, origin or source, location, or control of the foreign currency or assets). b) The transaction is designated to evade the Legislation regulating the crime of money laundering and the obligations collected in these norms. c) The transaction has no purpose or apparent purpose of legitimacy or does not conform to a transaction in which a client is normally involved, and the financial institution does not have knowledge of an appropriate and logical explanation of the transaction after having carried out all investigation and review of the background and possible purpose of the transaction.

Art. 25 FORMAT
The communication of unusual activity will be carried out by means of the "Individual Report of Unusual Activity", according to Annex B, which becomes part of this norm. This format may be modified when, in its implementation, the Superintendent considers it necessary.

Art. 26 REPORTING DEADLINE
The "Individual Report of Unusual Activity" will be supplied to the Superintendence within a period of thirty (30) days from the date of detection of the activity constituting the requirement for the completion and supply of said report.

Art. 27 RECORD RETENTION
The financial institution shall retain all evidence or support of the unusual activity and the copy of the report for a period of five (5) years.
Likewise, the financial institution shall retain all evidence or support of any unusual activity for which the financial institution determines, after having finished the investigation, the non-existence of factors requiring the submission of the report.

Art. 28 AVAILABILITY OF INFORMATION
Financial institutions will have available all supporting documentation or evidence upon request of the Superintendence or by order issued in accordance with the Law issued by competent judicial authorities within the respective criminal process.

Art. 29 PROHIBITION OF NOTIFICATION OR DISCLOSURE OF THE REPORT No financial institution, director, executive, employee, or agent of the financial institution may notify the person or persons involved in the unusual activity that the activity has been reported. Likewise, no financial institution, director, executive, employee, or agent of the financial institution may disclose the content of an individual report of unusual activity and its respective supporting documents or evidence to any person, except when requested by the Superintendence and/or by order issued in accordance with the Law issued by competent authorities. Any case of unauthorized request must be reported to the Superintendence.

Art. 30 SYSTEMATIC COMMUNICATION OF TRANSACTIONS In the case that a transaction exceeds the parameters to report cash transactions in excess of US$10,000.00 or the equivalent in national currency and also qualifies as unusual activity, both reports must be supplied to the Superintendence.

CHAPTER VIII
SANCTIONING REGIME

Art. 31 SANCTION FOR NON-COMPLIANCE
Financial institutions and/or the Directors and Officials thereof, who fail to comply with this norm, will be subject to sanction in accordance with what is established in the laws and regulations related to the matter of money laundering and what is established in the General Banking Law, as applicable.

CHAPTER IX
TRANSITIONAL PROVISIONS

Art. 32 PREVIOUS CLIENTS
For clients established prior to the publication of this norm, Financial Institutions will have a period of two years counted from its publication, to comply with what is established in Chapter III "Client Identification". In the cases of clients regarding whom it has not been possible to obtain the required information, within the deadline granted in this article, Financial Institutions may declare such accounts inactive until they complete the information.

CHAPTER X
FINAL PROVISIONS

Art. 33 VALIDITY
This norm will enter into force from its publication in the Official Journal, La Gaceta, as follows:
a) For the application of what is established in Chapter II, "Money Laundering Prevention Program", within a period of three months counted from the publication in the Official Journal, La Gaceta. b) For the application of what is established in Chapter III, "Client Identification", within a period of three months counted from the publication in the Official Journal, La Gaceta. Regarding accounts opened during this implementation period, financial institutions will have until November 15 of the current year to comply with what is established in said chapter. c) For the application of what is established in Chapters IV and V, "Identification, Recording, and Data Extraction Requirements in Cases of Fund Transfers"; and "Requirement of Systematic Communication of Cash Transactions whose amount exceeds US$10,000.00 or the Equivalent in National Currency", respectively, within a period of twelve months from the publication of the norm in the Official Journal, La Gaceta. d) The chapters not mentioned in the previous subsections will enter into force from the publication of this Norm in the Official Journal, La Gaceta.

ANNEX A
INSTRUCTIONS FOR THE SEND OF INFORMATION
OF OPERATIONS IN DOLLARS THAT MUST BE REPORTED

TO WHOM IT IS DIRECTED:
This instruction is directed to financial institutions whose clients carry out in one day cash operations exceeding US$10,000.00 dollars or its equivalent in national currency.

FORM OF SEND OF THE INFORMATION:
The transactions indicated in Art. 17 of the Norm for the Prevention of Money Laundering, which occur in a month, will be reported to the Superintendence within the first ten (10) calendar days of the following month, cut off at the last day of the reported month, in a plain or ASCII file according to the structure expressed in this document. The ASCII file can be sent on a floppy disk to the Superintendence in a sealed envelope addressed to the Director of Informatics or via email to the address cbravo@siboif.gob.ni

FILE NAME:
The name of the file will be formed by:

The first 3 digits: code of the financial institution as expressed in the Catalog Annex B.
The following 2 digits correspond to the year the information is cut off.
The following 2 digits correspond to the month the information is cut off, in the case of months from January to September from 1 to 9, a 0 must be prefixed, so that January corresponds to month 01, February 02, and so on.
The extension of the file must be txt
For example: if the financial institution with code "102" in the Catalog of Financial Institutions, Table 2, is going to send the information corresponding to the month of September 2003, the name of the file would be:
"1020309.txt"
In case the file size is greater than 1.44MB, it may be sent compressed using the Winzip program.

STRUCTURE OF THE PLAIN FILE
The structure of the plain file must be according to Table 1.
The catalogs to be used are described in Tables 2, 3 and 4.

GENERAL INSTRUCTIONS FOR FILLING THE FIELDS:
1- All letters entered into text type fields must be entered in uppercase.
2- Numeric values may be prefixed with 000 or blank spaces to fill the size established in the field.
3- The start positions of the fields must be respected according to the established structure.
4- Values that are not required in case they come empty must be filled with blank spaces.
5- When the manager or the beneficiary of the transaction is a foreigner NOT resident in Nicaragua, all pertinent information must be filled. In case of being resident, it is left to the option of the institution to fill these data.

INSTRUCTIONS FOR FILLING TABLE 1
Date: Date on which the transaction was carried out Financial Institution: Corresponds to the code assigned to the institution that is reporting the transaction, according to Table 2. Branch or Office: The alphanumeric code of the office or branch where the transaction was carried out, according to the catalog made by the financial institution for such effect.

A. Person who manages the transaction
Names, Surnames: The two names and two surnames of the person who manages the transaction.
Address: Complete and updated address of the manager of the transaction.
Type of Identification: The code of Type of Identification, according to Table 4, and as detailed below:
For national natural persons:
It will correspond to indicate the number of citizen identity card, issued by the Supreme Electoral Council (CSE).

For foreign natural persons: Indicate the respective identification number, according to the figure in which they have been admitted to remain in the national territory:
a. Residents: The number of temporary or permanent residence card, issued by the General Directorate of Migration and Foreigners (DGME). b. Non-residents: The number of passport with valid entry visa, or the CA-4 document for the case of Central Americans.
c. Diplomats, consular or international organization officials; and guests: The number of card issued by the Chancellery of the Republic; in accordance with Art. 72, Chapter XIV Final Provisions; of the Foreigners Law.

Identification Number: The number of the identification document that corresponds Nationality: The nationality of the manager according to ISO Catalog.

B. Person in whose name the transaction is carried out Names, surnames / corporate name; The two names and two surnames if the beneficiary is a natural person; if it is a legal entity, the Corporate Name of said entity must be noted. Address: Complete and updated address of the beneficiary of the transaction. Type of Identification: The code of Type of Identification according to Annex 4, and as detailed below. For national natural persons:
It will correspond to indicate the number of citizen identity card, issued by the Supreme Electoral Council (CSE).
For foreign natural persons: Indicate the respective identification number, according to the figure in which they have been admitted to remain in the national territory:
a. Residents: The number of temporary or permanent residence card, issued by the General Directorate of Migration and Foreigners (DGME). b. Non-residents: The number of passport with valid entry visa, or the CA-4 document for the case of Central Americans.
c. Diplomats, consular or international organization officials; and guests: The number of card issued by the Chancellery of the Republic; in accordance with Art. 72, Chapter XIV Final Provisions; of the Foreigners Law.

For legal entities:
The number of Single Tax Register RUC.
Identification Number: The number of the identification document that corresponds.
Nationality: The nationality of the beneficiary according to ISO Catalog.

C. Data of the operation(s)
Individual or Split Transaction: If the transaction is individual "I", or split "F" Amount: Note the amount of each transaction Type of transaction: Type the Code that corresponds according to Table 3, Catalog of Types of Transactions. Account Number: Note the number of the account of the transaction.

TABLES:
Table 1. Structure of Data of Operations Subject to Report
Table 2. Catalog of Financial Institutions (some no longer operate)
Table 3. Catalog of Types of Transactions
Table 4. Catalog of Types of Identification

Norm for the Prevention of Money Laundering and Other Assets Superintendence of Banks and Other Financial Institutions – Nicaragua

TABLE 1

Data Structure of Reportable Operations

Field Name	Type	Size	Decimals	Initial Position	Required Format	Description
Date	Date	8	1		dd/mm/yy	Yes
Date of transaction or transactions
Financial Institution	Numeric	3	0	9	Code assigned by ASOBANP	Yes	Code assigned according to Annex 2.
Branch	Text	4	12		Code assigned by the Financial Institution	Yes
Manager First Name	Text	30	16		No 1,2	First name of the manager
Manager Second Name	Text	30	46		No	Second name of the manager
Manager First Last Name	Text	30	76		No 1,2	First last name of the manager
Manager Second Last Name	Text	30	106		No	Second last name of the manager
Manager Address	Text	250	136		No 1,2	Complete and updated address of the manager
Manager ID Type	Numeric	2	0	386	Identification Types Catalog	Yes	Code assigned according to Table 4.
Manager ID Number	Text	20	388		Yes	Corresponding identification document number
Manager Nationality	Text	2	408	ISO Catalog	Yes	Manager's nationality according to ISO Catalog
Beneficiary First Name	Text	30	410		No 2,3	First name of the beneficiary
Beneficiary Second Name	Text	30	440		No	Second name of the beneficiary
Beneficiary First Last Name	Text	30	470		No 2,3	First last name of the beneficiary
Beneficiary Second Last Name	Text	30	500		No	Second last name of the beneficiary
Beneficiary Legal Name	Text	70	530		No 2,3	Legal Name when dealing with a legal entity
Beneficiary Address	Text	250	600		No 2	Complete and updated address of the beneficiary
Beneficiary ID Type	Numeric	2	0	850	Identification Types Catalog	Yes	Code assigned according to Table 4.
Beneficiary ID Number	Text	20	852		Yes	Corresponding identification document number
Beneficiary Nationality	Text	2	872	ISO Catalog	Yes	Beneficiary's nationality according to ISO Catalog
Individual/Fractionated	Text	1	874	I: Individual, F: Fractionated	Yes	Individual Transaction: "I", Fractionated Transaction: "F"
Amount	Numeric	19	2	875	999999999999999.99	Yes	Record amount of each transaction
Transaction Type	Text	2	894	Transaction Types Catalog	Yes	Code assigned according to Table 3.
Account Number	Text	20	896		No	Transaction beneficiary account number

Size per transaction: 915

Observations

When the Manager is a non-resident foreigner, these fields must be filled in.
When the transaction is Individual, these fields must be filled in.
These fields must be filled in depending on the type of Beneficiary person, Natural or Legal.

Norm for the Prevention of Money Laundering and Other Assets Superintendence of Banks and Other Financial Institutions – Nicaragua

Table 2
Catalog of Financial Institutions (some no longer operating)

Code	Description
101	Banpro
102	Bancentro
103	BAC
104	BDF
105	BANCO UNO
106	BANCALEY
201	FNI
301	CONFIA
302	FINDELTA
303	FINARCA
304	FINDESA
401	LAFISE
501	BOLSA DE VALORES DE NICARAGUA
502	INVERCASA
503	LAFISE VALORES
504	BAC VALORES
505	INVEREXPO
506	INVERNIC
507	PROVALORES
508	VALCA
509	INVESTA
510	BCD VALORES
601	CENIVAL
701	SEGUROS AMÉRICA
702	SEGUROS CENTROAMERICANOS
703	INISER
704	MOTROPOLITANA
705	SEGUROS DEL PACIFICO
801	ALFINSA
802	ALMACENA

Norm for the Prevention of Money Laundering and Other Assets Superintendence of Banks and Other Financial Institutions – Nicaragua

803 ALMAGRO
804 ALMEXSA
805 ALPAC
806 SEMAR

Table 3
Catalog of Transaction Types

Code	Description
11	Deposits
12	National transfers sent
13	International transfers sent
14	Purchase of Consignment Instruments
15	Exchange Desk (Income)
16	Credit Payments
17	Service Payments
18	Various Income
21	Account Withdrawal
22	National transfers received
23	International transfers received
24	Payment of Consignment Instruments
25	Exchange Desk (Expenses)
26	Credit Disbursements
27	Various Expenses

Notes:
1) Income was coded as 1x, while expenses as 2x.
2) If the transaction has no assigned code, report it as "Various Income" or "Various Expenses", as appropriate.

Norm for the Prevention of Money Laundering and Other Assets Superintendence of Banks and Other Financial Institutions – Nicaragua

Table 4
Catalog of Identification Types

Code	Description
1	Identity Card (Cédula de Identidad)
2	Residence Card (Cédula de Residencia)
3	Passport
4	R.U.C
5	Others

Norm for the Prevention of Money Laundering and Other Assets Superintendence of Banks and Other Financial Institutions – Nicaragua

ANNEX B
UNUSUAL (SUSPICIOUS) ACTIVITY REPORT

Initial Report | Correction | Supplement
(Mark if the report is initial or if it is a correction or supplement of a previous report)

I Identification of Financial Institution (Provide all pertinent information to the Financial Institution reporting the unusual activity) 1 Name of the Financial Institution 2 Address of the Financial Institution (Head Office)

II Information Regarding the Actor(s) of the Unusual Activity 3 Full Name of the Natural or Legal Person (Provide the name of the natural or legal person) 4 Address (Provide the complete address. Use additional copies of this format, if there is more than one address) 5 Identification (Indicate the type of identification used. Mark more than one box if more than one form of identification was presented. Retain a copy as supporting documentation) Passport | ID Card | Other 6 Phone Number 7 Cell Phone Number 8 Fax Number

III Information Regarding the Unusual Activity 10 Date of Detection of the Activity (The date the Financial Institution determined that the activity constituted reportable activity)

Norm for the Prevention of Money Laundering and Other Assets Superintendence of Banks and Other Financial Institutions – Nicaragua

12 Description of Financial Instruments Used (Describe the instrument including type, issuer, serial number, amount)

13 Transaction Amount (Indicate the value in dollars involved in the unusual activity. Indicate additional values if the activity involves more than one related transaction to the same person during the same period. Leave blank, if exact knowledge of the total value is not available)

14 Description of the Unusual Activity (Provide a complete chronological narration of the unusual or irregular facts that may constitute a violation of the Law and its regulations. The narration must be explicit and clear. The narration must include, without limitation, the following: Details regarding supporting documentation and retain the documentation in the financial institution for a period of five years; Indicate the person(s) who benefited through the transaction, the amount, and the circumstances of how they benefited; Describe and retain explanations provided by the actor of the unusual activity; Provide detail on the instruments used and accounts involved in the activity)

IV Information About the Person to Contact at the Financial Institution 15 Name 16 Signature

Norm for the Prevention of Money Laundering and Other Assets Superintendence of Banks and Other Financial Institutions – Nicaragua

ANNEX C
CLIENT PROFILE

NATURAL PERSON: CLIENT PROFILE

C Personal Data (Complete with the data of the account holder. In the case when the account holder is a minor or incapacitated, complete with the data of the tutor or legal representative) Full Name Last Names Maiden Name Sex: Male | Female Marital Status Date of Birth Nationality Home Address Phone | Cell | Fax | Email

D Means of Identification
ID Card | Passport | Residence Card | Other

G Information About the Account(s)
Account Number(s) | Type of Account(s)

Accounts with other Financial Institutions

H Expected Activity
Number of Debit Transactions | Number of Credit Transactions | Average Debit Amount (Córdobas) | Average Debit Amount (Dollars) | Average Balance (Total)

Account Officer / Business Executive | Branch Manager

Norm for the Prevention of Money Laundering and Other Assets Superintendence of Banks and Other Financial Institutions – Nicaragua

LEGAL ENTITY: CLIENT PROFILE

C Company Data
Company Name
RUC Number
Name of Legal Representative or Attorney-in-Fact Identification of Shareholders, Directors, and Administrators Date of Incorporation Company Address Phone | Cell | Fax | Email

D Data on economic activity
Geographic area of business activity (coverage) Local | National | Regional (C.A.) | International

Description of company activity
Profile of operations to be carried out in Nicaragua (only for legal persons constituted and domiciled abroad) Annual Sales Main clients and suppliers (identity and address)

F Information About the Account(s)
Account Number(s) | Type of Account(s)

Accounts with other Financial Institutions

G Expected Activity
Number of Debit Transactions | Number of Credit Transactions | Average Debit Amount (Córdobas) | Average Debit Amount (Dollars) | Average Balance (Total)

Account Officer / Business Executive | Branch Manager

Norm for the Prevention of Money Laundering and Other Assets Superintendence of Banks and Other Financial Institutions – Nicaragua

SIGNATORY DATA: (ANNEX C)

A Personal Data
Full Name
Last Names
Maiden Name
Sex: Male | Female
Marital Status
Date of Birth
Nationality
Home Address
Phone | Cell | Fax | Email