The Democratic Security National System (DSNS) receives a list formulated by the United Nations Security Council, which contains the names of persons, natural and legal, that are associated with terrorist activities and financing of terrorism. The DSNS also receives information from other international and local entities. After processing the information, the DSNS designates the persons whose funds or assets are considered to be susceptible to being frozen, then sends this list to all local entities so that they may: (i) detect in their own database funds or assets related to the persons that appear on the list; (ii) freeze all funds or assets detected; and (iii) inform in a strictly confidential manner to the Financial Intelligence Analysis Unit the enforcement of such measures.
In relation to Nicaragua's financial sector, on August 13 2014, the Superintendence of Banks and Financial Institutions (SIBOIF) issued a prudential norm (CD-SIBOIF-848-1-AGOST13-2014), which establishes different sanctions for financial institutions in case of failure to comply with the provisions of Decree 17-2014. These sanctions are pecuniary fines, which amounts vary in accordance to the severity of the offences committed by the persons or financial entities supervised by SIBOIF. The sole purpose of these sanctions is to encourage the supervised financial entities to be in compliance with the provisions of the Decree 17-2014.
All of these measures represent a true benefit for Nicaragua, given that they help solidify our country´s anti-corruption practices and create a better and more transparent environment for local and international investors. They also help the country to have a better standing with all the international entities in charge of preventing money laundering and terrorist financing.
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