El Salvador: financial inclusion

The Central Reserve Bank of El Salvador, in coordination with the country's banks and other institutions, has prepared a draft act to bring the majority of the population into the financial system.

In this regard, an important objective involves improving the living standards of under-served segments, by making effective use of financial services.

To do this, the measure would protect their rights as consumers, while emphasizing appropriate financial education.

Currently, the law is in the public consultation phase before being submitted for approval by the Legislature.

The bill includes the following main features:

Electronic money

The implementation of technology in the money supply and exchange of goods will promote the revitalization of the economy.

Under this program, payment obligations would be enforced by electronic money, which will be a duly registered digital device.

In addition, the bill establishes a series of regulations for the protection of the data of registered users, which is treated as confidential and may only be disclosed to institutions authorized by law.

Suppliers

The bill regulates the requirements for the establishment and operation of “electronic money suppliers”, responsible for receiving money and turning it into an electronic record.

Simplified requirements

The project creates simplified requirements for opening savings accounts , in order to ensure that people with lower incomes and isolated locations, can access the banking system.

Consumer Protection

The project requires expedited procedures supervised by the Consumer Protection Agency, which would govern the resolution of conflicts and protect the rights of users.

For more information, please contact Gerardo Nuñez at gnunez@consortiumlegal.com or (503) 2209-1600.