On February 14. 2025, Agreement No. 096 of the Attorney General Office was published in the Official Gazette No. 446, whereby the Guidelines for the Determination of Risk Categories for Clients to Facilitate la Opening of Bank Deposit Accounts and the Performance of Financing Transactions involving Foreign Investors and Salvadorans located abroad (“Guidelines”), which are incorporated into the  Rules for the Prevention, Detection, and Control of Money Laundering and Asset Financing, Terrorism Financing, and the Proliferation of Weapons of Mass Destruction. 

The main objective of the Guidelines is to facilitate the opening of deposit accounts and the execution of financial transactions for foreign investors and Salvadorans living abroad. 

Key aspects to consider

1. Regulated Entities: Banks established in El Salvador; branches of foreign banks operating in El Salvador; and entities authorized by the Superintendency of the Financial System to collect funds from the public.

2. Principles. Regulated Entities must apply the Guidelines under the following principles: (i) focus based on risks, (ii) compliance with the law, (iii) proportionality and agility, and (iv) monitoring and transparency.

3. Veracity Presumption. Regulated entities must presume the authenticity and veracity of the information submitted by clients under the good faith principle. Notwithstanding the foregoing, regulated entities can verify the authenticity of the information, especially in cases with indications, inconsistencies, or alerts. 

4. Categorization Criteria for Account Openings and Other Transactions: Clients shall be classified into three risk levels: Level 1 (Low), Level 2 (Medium), and Level 3 (High). This classification is based on a documented evaluation of the information provided by clients. The Guidelines complement the simplified due diligence process when establishing a client relationship. To determine a client’s risk category, regulated entities must assess the following factors (i) Country of Origin: Clients’ nationality shall be analyzed, considering their financial regulations, banking relationships, international cooperation, and risk lists issued by international organizations; (ii) Economic Sector or Commercial Activity: The nature of clients’ businesses shall be assessed, as certain activities carry a higher risk of money laundering and terrorism financing; (iii) Transaction Amounts: Projected monthly transaction volumes shall be examined, as higher amounts may indicate greater financial risk exposure.

5. Improvement of Risk Categorization: Clients may lower their risk level by meeting the following criteria. 

  • Maintaining an active bank account in the U.S., Canada, the European Union, the United Kingdom, Australia, or El Salvador.  
  • Holding operating licenses in regulated sectors relevant to their commercial activities.  
  • Being registered with the Financial Investigation Unit (UIF). 
  • Submitting external audits certified by internationally recognized firms. 
  • Appointing a resident representative agent in El Salvador. 
  • Serviced by the Investment and Export Promotion Agency (INVEST), the Secretariat of Trade and Investment, or the Ministry of Economy.  
  • Conduct fund transfers through active personal bank accounts in the abovementioned jurisdictions. 

6. Role of the Resident Representative Agent: The Guideline introduces the role of the Resident Representative Agent, enabling foreign investors and Salvadorans living abroad to designate a representative in El Salvador through a service contract. The regulated entity must be notified of this arrangement.  

7. Customer Service. Regulated entities must provide customer service by attending to clients benefitting from the Guidelines. Such service shall be attained through regulated communications.  

8. Exclusions: The Guidelines do not apply to foreign investors listed on national or international watch lists or whose economic activities or jurisdictions are deemed high-risk by a risk-based evaluation and correspondent banking relationships.  

The Guidelines came into effect on February 14, 2025. 

For more information, contact us at [email protected]