On April 4, 2022, Law number 1113 "Amendments to the civil law of notaries and the commercial code of the Republic of Nicaragua" came into force. Among the relevant aspects of these amendments, the status of Civil Law Notaries is reiterated as obligated subjects, that is, as responsible for implementing obligations of prevention, detection and reporting of activities potentially linked to money laundering, financing of terrorism and proliferation of mass destruction weapons (AML-CFT).
As part of these new obligations, article 15 of the Civil Law of Notaries is amendment, which establishes the obligations of the notarial function, including identifying the ultimate beneficiary owner of its client when it is a legal entity and carries out prevention activities, such as: alienation of real estate, for payment or free of charge, administration of securities or assets, the creation, operation or administration of companies, as well as their structural reforms; including the acquisition of companies.
Notwithstanding the prevention activities, it will be mandatory in all acts carried out before a Civil Law Notary, by commercial companies, to present a certified copy of the certificate of declaration and/or current update of the information of the ultimate beneficiary owner issued by the corresponding Public Registry, such copy will become part of the supporting documents of the Public Deed and of the reports that must be sent to the Centralizing General Directorate of Information and Prevention of the Supreme Court of Justice, as appropriate.
With the entry into force of these amendments and on the eve of the expiration of the term for commercial companies to update information and declare the ultimate beneficiary owner, those companies that do not carry out these processes will be subject to the administrative sanctions established in Law 1035, including the closure of its registry traffic and now also, that of access to notarial legal certainty.
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