WHAT ASFI CONSIDERS ILLEGAL FINANCIAL ACTIVITIES
According to the regulation, illegal or unauthorized financial activity includes any operation carried out by individuals or legal entities without ASFI’s proper authorization when performed on a regular and large-scale basis. Such activities may involve collecting funds from the public, offering credit, managing investments, currency exchange, or even promoting financial services without legal backing.
ASFI CRITERIA FOR FREQUENT AND MASSIVE ACTIVITIES
To determine whether an activity qualifies as habitual and massive, ASFI evaluates two independent factors: frequency and income. For example, if a financial activity occurs more than three times per month or generates monthly revenues exceeding six thousand housing development units (UFV), it may be classified as unauthorized financial activity of a habitual and massive nature. These criteria apply to both individuals and informal businesses.
WHEN ASFI ORDERS THE SHUTDOWN OF FINANCIAL OPERATIONS
When ASFI identifies illegal activities—either ex officio or following a public complaint—it can issue an immediate suspension order. This order prohibits the continuation of unauthorized financial operations and mandates the removal of all related advertising, whether physical or digital.
The regulation also provides for the preventive or permanent closure of offices, premises, or establishments involved in these activities. ASFI has the authority to conduct inspections and request documentation or information to support its enforcement actions.
LEGAL RESPONSIBILITIES FOR ILLEGAL FINANCIAL OPERATIONS
Anyone acting as an owner, manager, representative, or responsible party at a location where illegal financial activities are conducted must cooperate with ASFI. This includes providing the requested information and granting access for the verification and documentation of facts.
Furthermore, the use of trade names, business names, or other identifiers that resemble those of authorized entities can mislead the public and result in harsher penalties. This often occurs when informal businesses use names similar to licensed banks or cooperatives.
ILLEGAL FINANCIAL ADVERTISING: WHAT ASFI SANCTIONS
A key element of the regulation is misleading advertising. Any promotion suggesting that an individual or entity is authorized by ASFI—when that is not the case—is considered a violation. This includes advertisements on social media, print media, websites, and any other communication channel, even in other languages.
In summary, the regulation promoted by ASFI and updated in 2025 reinforces the protection of Bolivia’s financial system by establishing concrete measures to identify, penalize, and halt illegal or unauthorized financial operations. Its enforcement serves both preventive and corrective purposes, safeguarding the public from deception and protecting the financial system from unregulated risks.
Get in touch with our legal team for expert guidance on compliance with Bolivian financial regulations and defense against ASFI enforcement actions.
Frequently Asked Questions (FAQs)
What is considered an illegal or unauthorized financial activity?
An illegal or unauthorized financial activity is any financial system-related operation carried out without ASFI’s authorization, such as fund collection, loan offerings, or currency exchange.
What happens if someone lends money to several people without being registered?
If someone habitually and massively lends money without ASFI’s authorization, they may face sanctions and be required to cease the activity.
Is advertising financial services on social media regulated?
Yes. Advertising financial services on social media without proper authorization is regulated and considered a violation, especially if it misleads the public.
What are the criteria for determining if an activity is habitual and massive?
ASFI assesses both the frequency of the activity and the income generated—measured in UFV—to determine if an activity is habitual and massive.
What can someone do if they suspect an illegal financial activity?
If someone suspects an illegal financial activity, they can file a complaint with ASFI by providing detailed information about the facts, dates, locations, and individuals involved.
- Financial System Supervisory Authority. (2015, amended in 2025). Regulation for the Control of Illegal or Unauthorized Financial Activities. La Paz: ASFI.
- Law No. 393 on Financial Services.
- Law No. 2341 on Administrative Procedure.
The content of this article does not reflect the technical opinion of Rigoberto Paredes & Associates and should not be considered a substitute for legal advice. The information presented herein corresponds to the date of publication and may be outdated at the time of reading. Rigoberto Paredes & Associates assumes no responsibility for keeping the information in this article up to date, as legal regulations may change over time.
- ANTI-CORRUPTION SYSTEM IN BOLIVIA: KEY ENTITIES AND FUNCTIONS
- LEGAL RISKS OF ENTREPRENEURSHIP FOR PUBLIC OFFICIALS IN BOLIVIA
- CONTRACTS BETWEEN PRIVATE INDIVIDUALS AND THE STATE: VALIDITY AND APPLICABLE LEGAL FRAMEWORK IN BOLIVIA
- LEGAL REQUIREMENTS TO ESTABLISH AN NGO IN BOLIVIA
- RIGHT TO DEFENSE IN ADMINISTRATIVE PROCEEDINGS IN BOLIVIA
