The Board of Directors of the Monetary and Financial System (CDMF) has issued Resolution CDMF-XIX-3-25, approving the Regulation on the Authorization and Oversight of Financial Leasing Entities (EAFs). The regulation came into effect on June 18, 2025, with the aim of establishing a clear and effective regulatory framework for companies engaged in financial leasing in Nicaragua.
The regulation expands on provisions in Law No. 977, the Law Against Money Laundering, Terrorism Financing, and Financing of the Proliferation of Weapons of Mass Destruction, and its amendments, as well as Law No. 1232, the Law on the Administration of the Monetary and Financial System. It also strengthens control mechanisms over the non-bank financial sector, particularly regarding transparency, risk management, and anti-money laundering (AML) and counter-terrorism financing (CTF) compliance.
Establishment and authorization
Financial Leasing Entities (EAFs) must be incorporated as single-purpose corporations with a minimum share capital of C$20 million córdobas (US $544,217.69). They must meet strict technical, legal, and administrative requirements before beginning operations.
Additionally, they are subject to internal and external audits following guidelines issued by the Superintendency of Banks and Other Financial Institutions (SIBOIF).
Financial leasing contracts must contain minimum conditions, including interest rates, terms, fees, details of the leased assets, and options to purchase or extend the contract upon expiration.
The regulation also empowers the Superintendency to:
- Impose sanctions,
- Order the cessation of operations in cases of serious non-compliance, and
- Issue additional risk management and reporting guidelines, including mandatory information sharing with the Credit Risk Center.
Transitional regime
EAFs currently in operation must register with the Superintendency and submit a compliance plan within 90 days of the regulation’s effective date. Failure to meet the established requirements may result in an order to cease operations.
