Money laundering consists of concealing the illicit origin of goods and resources obtained through illegal activities. There are several ways to prevent money laundering in companies in order to comply with their obligations before the law.

In El Salvador, the Anti-Money Laundering Law is the law that aims to prevent, detect, punish and eradicate the crime of money laundering and asset laundering, as well as its concealment.

For our associate lawyer, Adalicia Torres, the correct application of Salvadoran legislation and the will of the professional sector will help prevent this type of crime and obtain more evidence to be transferred to the Financial Investigation Unit (UIF in Spanish) of the Attorney General’s Office.

“What the law seeks is to prevent money laundering and for companies to support the State by reporting operations. Companies must implement and develop procedures for money laundering and terrorist financing risk management,” she stated.

Firstly, Torres explains that all managers and all areas of the company must receive advice on anti-money laundering policies.  Likewise, institutions have to create a money laundering prevention manual.

Our head of the Regulatory Department also recommended the creation of institutional ethics manuals to know how to act in the face of suspicious financial activities, as well as to identify the risk level of each client and facilitate the asset recognition process.

Another important step that Torres urges to comply with is the registration of companies with the UIF. Likewise, it is necessary for natural or legal persons to be aware of the new UIF Instructions for the Prevention of Money Laundering and Financing of Terrorism.

“The UIF Instructions seek to reduce the gap of spaces where those who are doing acts of money laundering or financing of terrorism, are cornered,” she replied.

The appointment of a Compliance Officer is also a process that regulated entities must carry out. The purpose of this position is to routinely monitor compliance with policies and procedures for the prevention of money laundering.

Our team of lawyers and advisors at Torres Legal is highly qualified to assist institutions from various sectors in the areas of regulatory compliance, anti-money laundering and the elimination of corruption. For more information you can contact us through our social networks or visit us at our agency located at Calle Cuscatlán, #4312, Colonia Escalón, San Salvador, El Salvador.

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