Transparency Law

Human-rights and democracy organizations are alerting Honduras to the risk that the new Beneficial Owner Law—designed to identify true business owners and combat money laundering—could be weaponized against NGOs and civil-society groups critical of the government, especially if the CNBS uses it to impose extra requirements that block access to financing.

A new law creating a centralized registry of beneficial owners won backing from legal experts as a tool to combat money laundering and improve Honduras's standing with the international Financial Action Task Force, though analysts warn of risks if sensitive information falls into the wrong hands or is misused for political purposes.

Congress unanimously approved the Transparency and Centralized Beneficial-Owner Registry Law, which aims to identify final beneficiaries of legal entities and structures to combat money laundering, terrorism financing, corruption, and organized crime.

The National Congress has failed to respond to transparency requests for information on institutional advertising spending, deputy travel allowances, and legislative social programs, violating the 10-business-day legal deadline.