Law No. 1282, published in La Gaceta, the Official Gazette, on June 19, 2026, amends Law No. 977, the Law Against Money Laundering, Terrorist Financing, and the Financing of the Proliferation of Weapons of Mass Destruction. Among its most significant reforms is the strengthening of the institutional role of the National Microfinance Commission of Nicaragua (CONAMI), expanding both its regulatory powers and the range of entities subject to its supervision.
Strengthening CONAMI's institutional role
The reform expressly incorporates CONAMI as a member of the National AML/CFT/CPF Council, reinforcing its participation within Nicaragua's national system for the prevention of money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction. In addition, CONAMI is expressly authorized to issue regulations aimed at identifying, assessing, monitoring, and mitigating these risks for the entities under its supervision, further strengthening its regulatory authority in compliance matters.
New prudential regulatory powers
One of the most significant changes introduced by the reform is the expansion of CONAMI's authority to exercise prudential regulation over the reporting entities under its supervision.
In practice, this means that supervision will no longer be limited to compliance with anti-money laundering, counter-terrorist financing, and counter-proliferation financing (AML/CFT/CPF) obligations. Instead, CONAMI will be able to adopt a comprehensive risk-based supervisory approach, issuing regulations addressing areas such as credit risk, liquidity risk, market risk, operational risk, legal risk, reputational risk, and other risks inherent to financial activities.
This model is similar to the one currently applied to Microfinance Institutions (MFIs), which are subject to both on-site and off-site supervisory processes.
Inclusion of savings and credit cooperatives
Law No. 1282 also brings savings and credit cooperatives that regularly engage in financial intermediation and whose equity is below C$100 million (approximately US$2,718,391.00) under CONAMI's supervisory authority.
This measure continues the gradual expansion of CONAMI's supervisory scope initiated under Law No. 1215, which incorporated Pawn Service Providers (PSEs) and Loan Service Providers (PSPs) as regulated entities.
As a result, CONAMI significantly broadens its supervisory reach, further consolidating its role as the regulatory authority overseeing an expanding range of participants within Nicaragua's non-bank financial sector.
Key implications for supervised entities
Entities affected by these reforms should assess whether their internal structures are aligned with the new prudential supervisory approach. Key areas for review include:
- Corporate governance structures and the responsibilities of senior management.
- Enterprise-wide risk management systems.
- AML/CFT/CPF compliance programs.
- Internal control and audit policies.
- Readiness to comply with future regulatory requirements and CONAMI inspections.
The expansion of CONAMI's regulatory powers makes it likely that additional prudential and compliance regulations will be issued in the short to medium term. Accordingly, conducting a proactive assessment now can help organizations reduce compliance risks and facilitate a smoother transition to the new regulatory framework.
