The Guatemalan government published the Comprehensive Law for the Prevention and Repression of Money Laundering and the Financing of Terrorism on June 17. It will take effect on September 17 and will require companies to disclose information that has historically remained within the private corporate sphere, including shareholding structures, beneficial owners, and changes in corporate control. It will also increase due diligence processes applied by banks, insurance companies, and other entities involved in key operations for the development of electrical infrastructure.
According to Ligia López de Luna , a specialist in Electrical Regulatory Law, the scope of the law extends far beyond the financial sector and will reach virtually all stages of a project's life cycle.
“The new regulations may affect new projects, existing companies, financing, bid guarantees, investors, shareholding structures and changes of control,” the specialist warned in a conversation with Energía Estratégica .
This new scenario also comes at a particularly sensitive time for the industry. In recent weeks, energy developers have expressed concern about controversial fees and requirements imposed by some municipalities , which, according to various market players, could affect the viability of projects awarded through competitive bidding processes. Now, these discussions are compounded by a regulatory framework that will demand higher standards of compliance and traceability.
One of the most relevant changes is related to the identification of the ultimate beneficial owner, a concept that aims to determine who really exercises control of a company, even when there are intermediary companies, holdings, trusts or investment funds.
“The law requires identifying who really controls the company,” López de Luna pointed out.
The legislation sets a 15% threshold for shareholding or control and requires companies to document the composition of their corporate structures more precisely. At the same time, it reforms the share registration system by incorporating detailed information on shareholders, transfers of ownership, encumbrances, and trust structures.
According to the specialist, the change represents a profound transformation for a sector where shareholder information used to be kept within the private sphere of each company.
“It ceases to be private data and becomes information made available to the public registry,” he said.
The measure will apply to both new developments and companies already operating in the market. Existing companies will be required to update corporate information, share registers, and governing bodies within the deadlines established by the regulations.
The law also introduces significant changes in corporate law. Among them is the requirement to register all members of the governing bodies with the Commercial Registry, not just those with legal representation.
López de Luna emphasized that the adaptation will not be limited to future projects.
“Existing companies will also have to adapt,” he stated.
Companies would have specific periods to regularize the required information. Failure to do so could result in restrictions on carrying out certain registration procedures, a situation with potential impact on routine corporate operations.
Updating records, identifying beneficial owners, and reviewing shareholding structures would thus appear among the first tasks that companies will have to address before the rule comes into effect.
Access to capital would also be affected by the new requirements.
Banks may require more comprehensive information on beneficial owners, source of funds, shareholding structure, and corporate groups before approving financing for energy projects. This represents a tightening of the due diligence processes that typically accompany the development of capital-intensive initiatives.
According to López de Luna, financial institutions would be authorized to conduct a more thorough review of the corporate information of those requesting funds.
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The specialist explained that this situation could generate more extensive processes of analysis and documentary validation, especially in operations with the participation of international investors or complex corporate structures.
New conditions for tenders and guarantees
The bidding processes would also not be exempt from the changes.
While common mechanisms such as standby letters of credit, surety bonds and cash deposits would remain in place, the documentation required to support those guarantees could increase significantly.
However, it warns that "it could increase the documentation needed to support them," so it recommends anticipating the preparation and validation processes.
The traceability of the resources used to establish these guarantees would become increasingly important in future competitive processes, particularly those linked to the development of new generation capacity or transmission infrastructure.
This issue takes on particular relevance considering the current state of the Guatemalan electricity market. The PEG-5 tender , considered one of the most significant calls for bids in recent years for the addition of new generation capacity, recently concluded. The process awarded long-term contracts at prices that, according to the National Electric Energy Commission (CNEE), were below market rates, reinforcing the interest of developers and investors in the country.
In addition, authorities announced new calls for tenders during FES Guatemala to expand the national electricity supply. These include tender PEG-6 , aimed at contracting firm power, and PET-4 for transmission infrastructure.
In that scenario, the increased traceability requirements regarding the origin of funds, the shareholding structure of companies, and the supporting documentation for guarantees could become an increasingly relevant element for participants seeking to compete in future procurement processes.
“The law strengthens control over the sale of projects, the entry of investors, corporate restructurings, and changes in share ownership,” López de Luna emphasized.
For a market where the incorporation of new capital is common during the different stages of development of an initiative, the permanent updating of corporate information will become central.
At the same time, the legislation would increase responsibilities related to corporate compliance, internal oversight, and corporate governance.
“Transparency ceases to be a good practice and becomes a necessity,” the specialist emphasized.
The scope of the law also includes the criminal liability of legal entities for money laundering-related offenses. Penalties can reach up to $625,000 and, in cases of repeat offenses, may even include the permanent cancellation of the company's legal status.
The countdown to September
Although the regulations for the law have not yet been issued, López de Luna believes that companies should not wait to begin the adaptation processes.
“Preparation can begin now,” he said.
The specialist also recalled that the energy sector has historically faced regulatory and administrative controversies that were eventually resolved favorably through legal resources and judicial actions.
“We always had very good results,” he said, referring to previous experiences related to municipal requirements that were later challenged in court.
With the regulations set to take effect in September, companies should move forward with reviewing their corporate structures, strengthening compliance mechanisms, updating corporate registries, and identifying beneficial owners. In an environment where regulatory challenges are multiplying, adaptability will become increasingly crucial for accessing financing, competing in tenders, and securing new investments in Guatemala's electricity system.
