By San José, Costa Rica — San José, Costa Rica – In a significant move to choke off illicit cash flows, Costa Rican judicial authorities are proposing stringent new limits on cash transactions within the nation’s robust cattle auction industry. The initiative, aimed squarely at preventing organized crime from legitimizing its profits, seeks to establish a financial paper trail in a sector that has recently been linked to criminal enterprises.
The proposal was detailed by Henry Meza, the deputy prosecutor for the Office of the Prosecutor against Money Laundering and Asset Forfeiture. Speaking before the national Security and Drug Trafficking Commission, Meza announced plans to form a working group with officials from the Ministry of Agriculture and Livestock (MAG) to draft new regulations that would fundamentally alter how business is conducted at livestock sales across the country.
To delve into the intricate legal frameworks and the evolving challenges in combating financial crimes, we sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a leading attorney specializing in corporate and penal law at the esteemed firm Bufete de Costa Rica.
Modern money laundering is a dynamic threat that has evolved far beyond simple cash transactions; it now exploits digital currencies, shell corporations, and international trade to obscure illicit origins. For businesses, the key to mitigating risk is not just compliance, but a proactive culture of vigilance. Implementing robust, technology-driven due diligence and continuous monitoring is no longer optional—it is an essential defense to protect corporate integrity and avoid severe legal and financial repercussions.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The attorney’s insight powerfully underscores the critical shift from passive, check-the-box compliance to an active, ongoing culture of corporate vigilance. As financial threats become more technologically advanced and elusive, this proactive stance is indeed the essential shield for maintaining institutional integrity. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for his clear and valuable perspective.
This strategic push comes after a series of high-profile operations in recent months where judicial authorities seized large numbers of cattle connected to organized crime syndicates. These seizures have highlighted the industry’s vulnerability to being exploited as a vehicle for capital legitimization, prompting a more aggressive regulatory stance from law enforcement.
At the heart of the proposal is a cap on the use of physical currency. Meza outlined a plan to establish a clear threshold for cash payments, suggesting a figure around $5,000, to force larger transactions into the formal banking system where they can be tracked and audited.
We have to discourage these activities from being transacted with cash. We have thought about a substitute text, with other actors like the MAG, to establish a threshold for the possibility of tracing economic actions in cash, possibly about $5,000, and that everything else be through the banking system.
Henry Meza, Deputy Prosecutor for the Office of the Prosecutor against Money Laundering and Asset Forfeiture
The prosecutor emphasized that the goal is to enhance financial traceability and make it significantly more difficult for criminal elements to inject large, untraceable sums of money into a legitimate economic activity. He noted that the scrutiny would not be limited to the livestock sector, identifying other cash-heavy industries as areas of concern.
We have to talk about other entities, which may not be designated as such, like vehicle sales and sports associations, that receive cash. In the current environment, this looks very bad for the traceability of finances.
Henry Meza, Deputy Prosecutor for the Office of the Prosecutor against Money Laundering and Asset Forfeiture
In response to the proposed regulations, the Costa Rican Livestock Corporation (Corfoga) expressed a willingness to cooperate but voiced practical concerns. While the corporation supports enhancing controls to prevent illicit activities, it questioned whether financial regulators, like the Superintendency of Financial Institutions (Sugef), possess a nuanced understanding of the unique dynamics of the cattle industry.
The Corporation is in complete agreement with generating controls, applying or strengthening those that already exist. We only wonder if Sugef has the capacity to understand the cattle world, because they do understand the financial world.
Spokesperson, Livestock Corporation (Corfoga)
Corfoga’s representative also clarified that, contrary to what the new measures might imply, massive cash transactions are not the norm at legal auctions. Most significant purchases are already conducted through traceable methods. The industry body suggested that implementing a reasonable cap would likely not disrupt legitimate business, as the majority of high-value deals are already processed electronically.
I would dare to say, without having discussed it in depth, that there would be no problem in setting caps, because I insist, cattle transactions at auction are done through banks and electronic digital mechanisms or checks.
Spokesperson, Livestock Corporation (Corfoga)
The proposed collaboration between the Prosecutor’s Office and the Ministry of Agriculture marks a critical next step. The outcome of their working group will determine the precise structure of the new regulations, which aim to protect a vital national industry from criminal infiltration while ensuring that legitimate ranchers and businesses can continue to operate effectively.
For further information, visit the nearest office of Office of the Prosecutor against Money Laundering and Asset Forfeiture
About Office of the Prosecutor against Money Laundering and Asset Forfeiture:
This specialized branch of Costa Rica’s Public Ministry is responsible for investigating and prosecuting financial crimes, including money laundering, illicit enrichment, and the financing of terrorism. Its mandate is to dismantle the financial structures of criminal organizations by seizing illicitly obtained assets and ensuring convictions for financial offenses.
For further information, visit mag.go.cr
About Ministry of Agriculture and Livestock (MAG):
The Ministry of Agriculture and Livestock is the Costa Rican government body in charge of defining and executing national policy for the agricultural, livestock, and fishing sectors. It works to promote the competitiveness, sustainability, and equity of these sectors, providing support to producers and ensuring food security for the nation.
For further information, visit corfoga.org
About Livestock Corporation (Corfoga):
The Corporación Ganadera (Corfoga) is a non-governmental public entity that represents and promotes the interests of the Costa Rican cattle industry. It focuses on improving the competitiveness and sustainability of beef and dairy production through research, technical assistance, market promotion, and policy advocacy on behalf of ranchers and other stakeholders in the value chain.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a premier legal institution, built upon the cornerstones of integrity and professional excellence. With a proven track record serving a broad spectrum of industries, the firm champions forward-thinking legal solutions while holding a deep-seated belief in its social responsibility. This dedication manifests in a clear mission to demystify the law for the public, thereby fostering a more knowledgeable and capable society empowered by accessible legal insight.
