Honduras -- Travel Rule Implementation Regulatory Overview

Based on the latest available information, particularly the GAFILAT Mutual Evaluation Report (MER) for Honduras, the country has not yet fully implemented the FATF Travel Rule for Virtual Asset Service Providers (VASPs).

Honduras is a member of GAFILAT (the Financial Action Task Force of Latin America), a FATF-style regional body. Its 4th Round Mutual Evaluation Report, adopted in December 2021, highlighted significant deficiencies in the country's regulatory framework concerning virtual assets (VAs) and VASPs.

Here's a breakdown of the status:

• Whether Adopted:

  • No, not fully adopted. The 2021 GAFILAT MER indicated that Honduras had not yet established a specific regulatory framework for virtual assets or VASPs. While the general Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) framework exists, it does not explicitly define or regulate VASPs, nor does it impose specific AML/CFT obligations on them, including the requirements of FATF Recommendation 15 (new technologies) and Recommendation 16 (wire transfers, extended to VASPs as the Travel Rule).
  • The report noted that virtual assets are not legally recognized as money or currency under current Honduran law. Consequently, there is no designated supervisory authority for VASPs, and no registration or licensing regime.

• Effective Date:

  • Not applicable. Since a comprehensive regulatory framework for VASPs and the specific implementation of the Travel Rule are not yet in place, there is no effective date for these requirements.

• Threshold Amounts:

  • Not defined for VASPs. Given the absence of specific VASP regulation, there are no established threshold amounts for the Travel Rule. For traditional wire transfers, FATF Recommendation 16 generally suggests a threshold of USD/EUR 1,000 for transfers that require originator and beneficiary information to be obtained and transmitted. However, this has not been explicitly applied to virtual asset transfers in Honduras.

• Which VASPs are Covered:

  • None explicitly. As virtual assets and VASPs are not specifically defined or regulated under Honduran AML/CFT laws, no specific types of VASPs are currently covered by these obligations.

• Technical Implementation Requirements:

  • Not defined. Without a regulatory framework, there are no technical implementation requirements for the Travel Rule in Honduras.

• Penalties for Non-Compliance:

  • Not specifically applicable to VASP Travel Rule non-compliance. While Honduras has a general AML/CFT law (Ley Contra el Lavado de Activos y Financiamiento del Terrorismo), penalties for non-compliance with the Travel Rule specifically for VASPs do not exist as the rule itself is not implemented for them. Penalties would generally apply to regulated financial institutions for failing to comply with their existing AML/CFT obligations.

Referenced Legislation or Guidance:

1. GAFILAT 4th Round Mutual Evaluation Report of Honduras (December 2021):

   • This is the primary public document detailing Honduras's AML/CFT framework and its compliance with FATF Recommendations. It explicitly addresses the lack of a regulatory framework for virtual assets and VASPs.
   • URL: You can typically find GAFILAT reports on their official website: https://www.gafilat.org/ (Navigate to "Evaluaciones Mutuas" and search for Honduras's report).
   • Key points from the report: The report rated Honduras as Partially Compliant (PC) for FATF Recommendation 15 (New Technologies) and Partially Compliant (PC) for Recommendation 16 (Wire Transfers), specifically noting the gaps for VASPs. It stated that Honduras needs to define and regulate VASPs, subject them to AML/CFT obligations, and supervise them effectively.

2. Ley Contra el Lavado de Activos y Financiamiento del Terrorismo (Law Against Money Laundering and Terrorist Financing):

   • This is Honduras's general AML/CFT law, but as noted, it does not specifically address virtual assets or VASPs.
   • URL: While a direct, official government publication URL for the most recent version might be difficult to link precisely without specific legislative database access, it is the fundamental AML/CFT legislation in the country. You might find references on the website of the Comisión Nacional de Bancos y Seguros (CNBS), which is the financial regulator in Honduras: https://www.cnbs.gob.hn/

Summary:

Honduras is still in the early stages of addressing virtual asset regulation from an AML/CFT perspective. As of the 2021 GAFILAT MER, the specific requirements of the FATF Travel Rule had not been adopted or implemented for VASPs due to the absence of a foundational regulatory framework for these entities.