The Law No. 1282, published in La Gaceta, the Official Gazette on June 19, 2026, introduces significant changes to Nicaragua’s legal framework on anti-money laundering (AML), counter-terrorist financing (CTF), and financial transparency.

The reform represents an important shift in corporate governance, corporate structuring, and customer and business partner due diligence requirements.

 

Mandatory registration of powers of attorneys for representación by third parties

One of the most significant changes affecting business operations is the requirement that any partner, shareholder, or member of a commercial company who is represented by another person in corporate matters must grant a power of attorney and register it with the Public Mercantile Registry. Such power of attorney must satisfy specific legal requirements established by law.

Failure to register the power of attorney renders the relevant legal acts ineffective against the company and third parties. Consequently, corporate acts or agreements executed under such representation may also be denied registration.

Companies should review their ownership structures and the powers of attorney granted for shareholder meetings and corporate decision-making to avoid challenges to the validity of actions taken by their representatives.

 

Key compliance obligations

The new law also strengthens operational and compliance requirements for a broader range of economic actors. Among the principal obligations that companies operating in Nicaragua should incorporate into their corporate governance and compliance frameworks are the following:

  • Enhanced Beneficial Ownership Reporting: Legal entities, consortia, trusts, cooperatives, and nonprofit organizations must implement effective procedures to identify and keep beneficial ownership information accurate and up to date before the relevant regulatory authorities.
  • Extended record retention requirements: Records relating to commercial, financial, and virtual asset transactions must be retained for a minimum of five years. For nonprofit organizations, detailed financial statements must be preserved for at least ten years.
  • Group-wide compliance programs: Financial groups and corporate conglomerates are required to implement AML/CTF compliance programs across all branches, affiliates, and majority-owned subsidiaries, including mechanisms for the controlled exchange of information to mitigate risk.
  • Non-delegable customer due diligence: The law clarifies that customer due diligence (CDD) and transaction monitoring are core responsibilities of the reporting entity and may not be delegated to independent third-party service providers.

 

Impact and benefits on the corporate sector

Although these measures increase administrative and compliance obligations, timely implementation offers important strategic advantages for businesses operating in Nicaragua.

Greater alignment with international standards strengthens the country's financial integrity and risk profile, helping preserve access to international banking relationships, facilitate cross-border financial transactions, and improve access to financing from multilateral financial institutions.

In addition, enhanced transparency regarding ownership and corporate representation provides greater legal certainty in mergers and acquisitions, corporate restructurings, and strategic investments by reducing the risk of undisclosed ownership issues or legal contingencies related to beneficial ownership.