Trade and Commercial Law Assessment - Honduras - Economic ...

TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004
HONDURAS
The former law on money laundering
reached only the proceeds from drug-trafficking and
certain listed crimes. Under the new law, “money and asset laundering” have been extended to
“income or assets resulting
from illegal activities or which lack economic foundation or legal
support for possession.” (Article 2 (9)).
The new law creates the National Bank and Insurance Company Commission (“the
Commission”). The Commission supervises state and private banks, financing partnerships,
savings and loan associations, general deposit warehouses, stock markets, insurance companies,
and public and private pension funds. The law also creates the Unidad de Información Financiera
(UIF), or Honduran Financial Information Unit (“FIU”). Banks and other financial institutions
are required to report to the FIU, which in turn is responsible for forwarding suspicious
transactions to prosecutors and police for investigation.
2. Implementing Institutions
The Ministry of Security:
The Minister of Security oversees the National Police, which took over internal security from the
military. When the police and the military were separated, some members of the military joined
the police force. Not only does Honduras have relatively little experience in operating a police
force but also that experience has been influenced by a military mind-set. Moreover, it is well
known that members of both the police and the military
are involved in perpetration and
protection of criminal operations.
The current Ministry of Security, appointed by the President, appears to be dedicated to attacking
corruption. He is apparently aware that, of the four departments under his authority, several are
riddled with corruption. The Special Services Unit, however, is apparently reliable and well
trained, including in matters of money laundering. The minister supports the Special Services
Unit, which works in cooperation with the Organized Crime Unit of the Public Ministry.
The Public Ministry:
The Public Ministry is headed by the Fiscal (Attorney) General, who is appointed by the
President of the National Congress. The ministry has responsibility for prosecution of crimes.
The Director of the Organized Crime Unit within the ministry prosecutes money laundering and
related crimes.
By all accounts, the current director of this unit has been extremely aggressive and very
successful in prosecuting corruption. She has prosecuted police, customs officials, military, and
public officials. Although prosecutions have encountered difficulties in the courts, and the
numbers are still relatively small, the situation is a vast improvement over 2000, when the DEA
report noted that there had not been even one successful
prosecution. According to current
information supplied by the Honduran Embassy, there have been six convictions and 300 seized
automobiles.
The Director of the Organized Crime Unit has been very visible in the media. While this is a
common tendency among prosecutors everywhere, in Honduras the practice may put pressure on
XIII-2