Law for the Administration of the Nicaraguan Monetary and Financial System is Approved

It harmonizes in a single legal body the regulations that governed the Central Bank of Nicaragua and the Superintendence of Bank and Other Non-Banking Financial Institutions, repealing: 

Law No. 732, "Organic Law of the Central Bank of Nicaragua”, and.  

Law No. 316, "Law of the Superintendence of Banks and Other Non-Banking Financial Institutions” and amendments; both contained in a consolidated form in Law No. 1175, "Law of the Nicaraguan Legal Digest of Banking and Finance Matters”. 

It is hereby established that the administration of the monetary and financial system shall be the responsibility of the following institutions, which shall maintain their organic, functional, administrative and budgetary autonomy to comply with the law and other related laws:  

The Monitory and Financial Directing Council (the "Directing Council”), who is the highest body for the administration of the monetary and financial system.  

The Central Bank of Nicaragua (hereinafter referred to as the "Central Bank”); and  

The Superintendency of Banks and Other Non-Banking Financial Institutions (hereinafter the "Superintendency”).  

Common provisions applicable to the Central Bank and the Superintendency are incorporated, referring to different matters such as: legal privileges, cooperation agreements, tax exemptions, senior management and personnel, bank secrecy and exception, transparency, internal and external control, among others. 

A series of financial operations (including monetary, banking, international and international operations with the Government of Nicaragua) that the Central Bank may carry out to fulfill its objectives and functions, as well as to facilitate liquidity, security, continuity, attention to emergencies and exceptional situations of financial intermediation are detailed.  

Provisions are established on the systems, instruments, services, channels and forms of payment in Nicaragua, as well as those operated by the Central Bank; and on the issuance, circulation, maintenance of value, exchanges and withdrawal of the currency of Nicaragua.  

The organization of the Superintendency is regulated, including the creation of a new Intendency, the "Resolution Intendency”; and provisions on the functions of supervision, surveillance, oversight, control of corporate governance and publications of supervised entities are indicated. 

A series of infractions and fines that the Central Bank and the Superintendency may impose for non-compliance with the law are established, as well as the administrative remedies that may be filed against decisions, acts or resolutions of these entities.  

The offices or agencies of the Public Sector are obliged to provide the information requested by the Central Bank and the Superintendency for statistical purposes and in the exercise of their functions.  

Every natural or juridical person, with residence or domicile in the Nicaraguan territory, whether national or foreign, is obliged to provide the Central Bank and the Superintendency, or the entities or persons designated by them, with the economic, financial, statistical and regulatory information requested in the established formats and terms. 

All prices, taxes, rates, fees, tariffs, fees, salaries, wages, contracts and obligations of any kind of nature to be paid, collected or executed in the national territory shall be expressed and settled in Cordobas. 

Qualifying or restrictive clauses, which impose payments, total or partial, in foreign metals, coins or currencies or any monetary unit other than the Cordoba, must not be entered, otherwise it shall be considered null and void.  

Operations that originate in transactions with foreign countries and are expressed in foreign currency.  

Transactions carried out by regulated financial institutions, agreed in foreign currency.  

Securities issued in foreign currency.  

Any other authorized by the Central Bank. 

A clause may be established in any contract whereby obligations expressed in Cordobas shall maintain their value in relation to a foreign currency. In this case, if there is a change in the official exchange rate of Cordobas in relation to such foreign currency, the amount of the obligation expressed in Cordobas shall be adjusted to the official exchange rate after the change. 

Any capital contribution or share transfer of the capital of the supervised institutions, to be valid, must have the authorization of Superintendency.  

All institutions supervised by the Superintendency must publish quarterly reports on their placements, investments and other assets. 

Financial institutions may not make references to or quote in advertisements or publicity, the reports of inspectors or any other communication or reports coming directly or indirectly from the Superintendency, unless it is authorized by the Superintendent. 

The natural and legal persons subject to supervision, inspection, surveillance and oversight of the Superintendency shall contribute resources to cover the total annual budget of the Superintendency as of the year 2026.