The Attorney General’s Office (FGR) published in the Official Gazette on February 14, 2025, the Guidelines for Determining Risk Categories for Clients to Facilitate the Opening of Deposit Accounts and the Execution of Financial Transactions for Foreign and Salvadoran Investors Abroad.
Compliance with these guidelines is mandatory for banks, foreign bank branches, and entities supervised by the Superintendence of the Financial System (SSF). Therefore, it is recommended that investors interested in opening accounts or conducting financial transactions in the country familiarize themselves with the applicable requirements and processes.
Additionally, these guidelines are part of the Instruction for the Prevention, Detection, and Control of Money Laundering and Asset Laundering, Terrorism Financing, and the Financing of the Proliferation of Weapons of Mass Destruction. They establish criteria for classifying clients into low, medium, or high-risk levels with the goal of facilitating financial inclusion and ensuring regulatory compliance.
Relevant information for foreign investors and salvadorans abroad:
Risk Classification: Clients will be categorized into three risk levels (low, medium, and high) based on:
- Country of origin.
- Economic sector or business activity.
- Projected transaction amounts.
Account opening requirements:
- Category A: Identity document (DUI or passport) and NIT; if a legal entity, the incorporation deed, board of directors’ payroll, and final beneficiaries.
- Categories B and C: Additional documentation will be required, such as proof of income, tax returns, or financial statements.
Criteria for improving the risk category:
- Having an active bank account in the U.S., Canada, the European Union, the United Kingdom, Australia, or El Salvador.
- Holding operating licenses in regulated sectors.
- Submitting certified external audits.
- Appointing a representative residing in El Salvador.
- Being assisted by the Investment and Export Promotion Agency (Invest in El Salvador), the Ministry of Commerce and Investments, or the Ministry of Economy.
Resident Representative Agent: A new provision allows foreign investors and Salvadorans abroad to appoint a representative in El Salvador through a service contract, notifying the corresponding financial institution.
Exclusions: These guidelines do not apply to foreign investors included in national or international watchlists, nor to those whose economic activity or jurisdiction is considered high risk.
rodrigo.benitez@garciabodan.com
Associate
García & Bodán
El Salvador