The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Central America: Money laundering – consolidation from the bottom?

Roberto Zamora, president of Lafise, says that money-laundering regulation is the pertinent driver of consolidation throughout the region.



ROBERTO ZAMORA-600

Roberto Zamora, president of Lafise



As the number of US banks that are willing to act as correspondent banks – and as those that continue to function in this capacity put added scrutiny and compliance costs on the regional banks, especially those with nesting accounts from other small local banks – the business model for small banking entities will, he argues, break down and lead to competitive advantages for pan-regional players. 

“The pressure on the lower end of the banking scale – which comes from the regulations that put added pressure on corresponding banking relationships – will have more of an impact on the banking system than those that affect G-Sibs,” Zamora says.

Franklin Santerelli, banking analyst at Fitch, thinks that BAC will be well placed to benefit – given both its scale and the experience that Grupo Aval has in complying with international regulations in this area. 

“BAC has meaningful operations in all these countries – as well as belonging to Banco de Bogotá – and so it won’t be an issue for them,” says Santerelli.





You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree