CRIMINAL SANCTIONS FOR UNAUTHORIZED FINANCIAL INTERMEDIATION
Criminal regulations establish that any person who, directly or indirectly, engages in financial intermediation without authorization is subject to imprisonment from five to ten years, in addition to fines ranging from one hundred to five hundred days.
LEGAL NULLITY OF UNAUTHORIZED TRANSACTIONS
Transactions carried out without authorization are null and void, meaning they have no legal validity and cannot be claimed or enforced in court.
ADDITIONAL RESPONSIBILITIES
In addition to nullity, there may be civil and criminal liabilities for damages caused, which will be determined by the competent judicial authority.
ILLEGAL USE OF FINANCIAL NAMES
It is prohibited to publish advertisements or use names that suggest a person or company has legal authorization to operate as a financial institution. Likewise, it is forbidden to use names that could be confused with those of authorized entities.
PROHIBITION OF ADVERTISING AND MISUSE OF FINANCIAL DESIGNATIONS
It is prohibited to publish advertisements or use names that suggest a person or company has legal authorization to operate as a financial institution. Likewise, it is forbidden to use names that could be confused with those of authorized entities.
CLOSURE OF OFFICES DUE TO UNAUTHORIZED INTERMEDIATION
ASFI may order the immediate suspension of illegal operations and, if necessary, proceed with the preventive or permanent closure of the offices involved, even requesting support from law enforcement. The case files may be submitted to the Public Prosecutor’s Office for criminal prosecution of those responsible.
OBLIGATION TO REPORT ACTIVITIES TO ASFI
The supervisory authority may require information on the economic situation, resources, management, and operations of those engaging in unauthorized activities, including reviewing documents and statements from third parties.
PERMANENT BAN FROM OPERATING IN THE FINANCIAL SYSTEM
Individuals responsible for financial crimes, money laundering, fraudulent bankruptcy, or participation in entities closed for illegal activity are permanently prohibited from forming or participating, directly or indirectly, in financial institutions or from providing outsourced services to them. This prohibition is absolute and does not expire.
CONCLUSION
In summary, engaging in financial intermediation without proper authorization leads to severe criminal sanctions, the invalidity of the operations carried out, and permanent exclusion from the regulated financial system, with the goal of safeguarding its integrity and stability.
Contact us for specialized legal advice on financial operations, ASFI regulations, and all matters related to financial intermediation in Bolivia.
Frequently Asked Questions (FAQs)
What is the penalty for conducting financial intermediation without authorization?
The penalty is five to ten years of imprisonment, plus a fine ranging from one hundred to five hundred days.
Do transactions carried out without authorization have any legal validity?
No, such operations are null and void and cannot be legally enforced or claimed.
Can ASFI shut down the offices of unauthorized entities?
Yes, it can order preventive or permanent closure, even with the support of law enforcement if necessary.
Can I use words like “bank” or “financial” in my company name without authorization?
No, it is prohibited if it may lead to confusion or mislead the public into thinking the company is a regulated financial entity.
Is the restriction on reentering the financial system temporary?
No, the prohibition is permanent and absolute for those sanctioned for illegal financial activities.
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.
