Honduras does not have a comprehensive, dedicated legal framework specifically addressing cryptocurrency or digital asset AML regulation as of 2025–2026; the existing AML/CFT regime was designed for traditional financial institutions and has not been substantively updated to address virtual assets. Honduras - State.gov

The National Banking and Insurance Commission (CNBS) serves as the primary regulator for AML/CFT compliance, and the Financial Investigation Unit (FIU) is housed within the CNBS but lacks operational and budgetary independence. Honduras - State.gov

No licensing or registration framework exists specifically for cryptocurrency exchanges, digital asset service providers, or virtual asset businesses in Honduras. Honduras - State.gov

No entities have been licensed or registered as cryptocurrency businesses or virtual asset service providers under any Honduran regulatory regime. Honduras - State.gov

The practical reality is that cryptocurrency businesses operate in a legal gray area: they are neither explicitly prohibited nor authorized, and they face uncertainty regarding AML obligations, tax treatment, and regulatory oversight. Honduras - State.gov

Honduras is a member of the Financial Action Task Force of Latin America (GAFILAT), a FATF-style regional body, and a GAFILAT mutual evaluation of Honduras was completed in 2016. Honduras - State.gov

The National Banking and Insurance Commission (CNBS) is the primary regulator for AML/CFT compliance in Honduras. Honduras - State.gov

The Financial Investigation Unit (FIU), Honduras' financial intelligence unit, is housed within the CNBS and is fully operational but inadequately staffed. Honduras - State.gov

The Interagency Commission for the Prevention of Money Laundering and Financing of Terrorism (CIPLAFT) was created in 2004 to coordinate public offices implementing the Asset Forfeiture Law and money laundering controls. Honduras - State.gov

Honduras criminalizes money laundering under an "all serious crimes" approach to predicate offenses, and legal persons can be held criminally and civilly liable. Honduras - State.gov

The Honduran government should develop an integrated national strategy against criminality and impunity to support the AML/CFT regime improvements. Honduras - State.gov

The legality of bearer shares presents a significant money laundering vulnerability in Honduras. Honduras - State.gov

The government should fully implement laws requiring the establishment of a supervisory entity for designated non-financial businesses and professions and adopt implementing regulations to bring those entities under the AML/CFT regime. Honduras - State.gov

While mechanisms are in place to freeze terrorist assets, systematic inefficiencies and lack of capacity hinder timely action. Honduras - State.gov

No licensing or registration framework exists specifically for cryptocurrency exchanges, digital asset service providers, or virtual asset businesses in Honduras. Honduras - State.gov

The CNBS regulates traditional financial institutions but has not established a licensing regime applicable to virtual asset businesses. Honduras - State.gov

KYC covered entities include banks, lending companies, financial service companies, check cashers, issuers or processors of financial instruments, traveler's checks, or money orders, money transfer businesses, stock exchange, exchange houses, exchange posts, general deposit warehouses, public and private pension managers, insurance companies, casinos and gaming establishments. Honduras - State.gov

ZERO entities have been licensed as cryptocurrency businesses or virtual asset service providers in Honduras, as no licensing mechanism exists for such activities. Honduras - State.gov

No capital requirements have been established for virtual asset businesses because no licensing regime exists for them. Honduras - State.gov

The application process and timeline for cryptocurrency licensing cannot be defined because no such licensing framework has been created. Honduras - State.gov

Know-your-customer (KYC) rules apply to banks, lending companies, financial service companies, check cashers, issuers or processors of financial instruments, traveler's checks, or money orders, money transfer businesses, stock exchange, exchange houses, exchange posts, general deposit warehouses, public and private pension managers, insurance companies, casinos and gaming establishments. Honduras - State.gov

Enhanced due diligence procedures for politically exposed persons (PEPs) are required for both foreign and domestic PEPs. Honduras - State.gov

Suspicious transaction report (STR) covered entities include banks, insurance companies, money exchange or remittance services, cooperative institutions and financial societies, credit card issuers, securities firms, private or public pension funds, notaries, real estate intermediaries, car dealers, dealers in precious metals, jewels, art, and antiquities, and lotteries and casinos. Honduras - State.gov

Insurance brokers, lawyers, and accountants are obligated to report suspicious transactions, but in practice no reports are filed. Honduras - State.gov

Honduras revised its STR form to capture as much information as possible from individuals conducting suspicious cash transactions, following complaints that financial institutions were not properly identifying customers. Honduras - State.gov

The revised STR was presented to the Honduran Banking Association for review and was awaiting approval of the President of the CNBS. Honduras - State.gov

Between January 1, 2014 and October 31, 2014, 741 STRs were received, and 96,084 currency transaction reports (CTRs) were received. Honduras - State.gov

The FIU referred 162 STRs to the Public Ministry between January 1, 2014 and October 31, 2014. Honduras - State.gov

The government should fully implement laws requiring the establishment of a supervisory entity for designated non-financial businesses and professions and adopt implementing regulations to bring those entities under the AML/CFT regime. Honduras - State.gov

Beneficial ownership requirements are not explicitly detailed in the available information, though bearer shares present a significant money laundering vulnerability. Honduras - State.gov

An operation against the Valle Family in the Department of Copan resulted in the arrest of 10 individuals associated with the Valles, three of whom were awaiting extradition to the United States on charges of trafficking narcotics. Honduras - State.gov

Honduras seized approximately $50 million in bank accounts and other assets, including a cattle ranch, a hotel, and luxury real estate in connection with the Valle Family operation. Honduras - State.gov

Between January 1, 2014 and October 31, 2014, there were 11 money laundering prosecutions and 6 convictions in Honduras. Honduras - State.gov

No enforcement actions have been taken against cryptocurrency businesses or virtual asset service providers because no entities are licensed or registered and no specific regulatory framework exists for them. Honduras - State.gov

No tax guidance has been issued for virtual assets in Honduras. Honduras - State.gov

The available regulatory framework does not address income tax, capital gains tax, or VAT treatment for cryptocurrency transactions. Honduras - State.gov

Honduras has not issued any official guidance on how crypto gains would be classified or taxed under its existing tax laws. Honduras - State.gov

Honduras lacks a comprehensive legal framework for cryptocurrency and digital assets, leaving virtual asset businesses in a regulatory vacuum. Honduras - State.gov

The FIU does not have operational and budgetary independence, which limits its effectiveness in combating money laundering. Honduras - State.gov

The CNBS's capacity to conduct compliance investigations is limited due to insufficient staff, and low staffing levels combined with increased responsibility delay response times for prosecutors' information requests. Honduras - State.gov

Lack of data and systematic analysis makes it difficult for the Honduran government to identify trends in money laundering. Honduras - State.gov

Lack of cooperation, communication, and coordination at all levels within the Government of Honduras has obstructed a higher success rate in investigations and prosecutions. Honduras - State.gov

Honduran law enforcement practices rely on unsophisticated techniques such as paper files and unsecured emails and evidentiary documents, which allows information to leak and ultimately affects the integrity of investigations. Honduras - State.gov

Insurance brokers, lawyers, and accountants are obligated to report suspicious transactions, but in practice no reports are filed, indicating a significant implementation gap. Honduras - State.gov

The legality of bearer shares presents a significant money laundering vulnerability. Honduras - State.gov

There is no supervisory entity for designated non-financial businesses and professions, and implementing regulations have not been adopted to bring those entities under the AML/CFT regime. Honduras - State.gov

Mechanisms to freeze terrorist assets face systematic inefficiencies and lack of capacity, hindering timely action. Honduras - State.gov

For cryptocurrency businesses, the absence of a clear regulatory framework means they cannot obtain a license, cannot access the formal banking system with confidence, and face uncertainty regarding their AML obligations. Honduras - State.gov

Honduras' geographic location makes it an ideal haven for transnational organized crime groups, and the Central America Four Agreement represents a vulnerability for cross-border movement of contraband and proceeds of crime. Honduras - State.gov

Corruption within the law enforcement and judicial sectors contributes to a favorable climate for significant money laundering. Honduras - State.gov

Honduras' measures to combat money laundering and terrorist financing

Honduras' progress in strengthening measures to tackle money laundering and terrorist financing

IMF Staff Concludes Visit to Honduras

OCTOBER 2016 Mutual Evaluation Report of the Republic of Honduras