BRIEFS. banking

Draft Reform law provides for stiffer fines

The draft of a new banking reform law provides for a fine of up to $1 million for individuals or corporations who operate without a license or who engage in money laundering.The law will be discussed by the Consejo de Gabinete next week.

"The fines for operating without a license or authorization have increased from $100,000 to $1 million," said Amauri Castillo, secretary general of the Superintendencia de Bancos (SB).

The latest draft of the law, which La Prensa reporters obtained, provides also for the creation of a banking supervisor, an increase in regulations for banks with international licenses, and an increase in the regulatory and supervisory powers of the Superintendencia.

The new law will give the SB the power to regulate and supervise not only banks but banking groups, "including companies that own bank shares," the draft law specifies.

The new law will give the SB the power to regulate and supervise not only banks but banking groups, "including companies that own bank shares," the draft law specifies.

Maruquel Pabón, one of the consulting firms that participated in drafting the new law, said there are no changes in terms of the powers given to the board of directors or to the superintendent.