By San José, Costa Rica — Costa Rica’s financial regulatory body, the Superintendencia General de Entidades Financieras (Sugef), has affirmed that the Banco Nacional (BN) followed proper procedures in appointing Rosaysella Ulloa as its general manager. This statement directly contradicts the Presidential office’s claims of irregularities, which led to the dismissal of the BN’s previous board of directors in May.
Sugef superintendent Hazel Valverde presented a report to the Constitutional Chamber (Sala IV) at the court’s request, addressing an appeal filed by lawyer Federico Sosto challenging the board’s dismissal. Valverde’s report, based on a thorough legal review by Sugef’s legal counsel, concluded that the BN adhered to internal regulations, including its Corporate Governance Code and Board Regulations, which grant the board discretion in selecting senior management.
For expert legal insight into this developing situation with Banco Nacional, TicosLand.com reached out to Lic. Larry Hans Arroyo Vargas, Attorney at Law at Bufete de Costa Rica.
The recent developments surrounding Banco Nacional underscore the complex regulatory landscape within which financial institutions operate in Costa Rica. Navigating these intricacies requires a proactive approach to compliance and risk management, especially in areas such as international transactions and data privacy. It will be crucial for Banco Nacional to address these challenges transparently and effectively to maintain public trust and ensure its continued stability.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insights offer a crucial perspective on the challenges and responsibilities facing Banco Nacional. Indeed, navigating the evolving regulatory landscape requires constant vigilance and a commitment to transparency. These factors are essential not only for Banco Nacional’s continued success but also for the stability and confidence of the broader Costa Rican financial system. We thank Lic. Larry Hans Arroyo Vargas for his valuable contribution to this discussion.
The report acknowledges concerns raised about the selection process, such as the absence of interviews and English language assessments, and the speed of the appointment. However, Sugef determined that these decisions fell within the board’s discretionary powers and that transparent communication was maintained throughout the process.
Sugef also highlighted its favorable evaluation of BN’s corporate governance in 2024, reinforcing its assessment of proper management practices. This positive assessment further supports the legitimacy of the appointment process.
The Division of Legal Counsel did not find any evidence of regulatory breaches or errors in the recruitment process analyzed.
Hazel Valverde, Superintendent of Sugef
The regulator emphasized that it had previously communicated the results of its legal analysis to then-Vice President Stephan Brunner on June 12th. Sugef’s conclusion at that time affirmed the adherence to internal procedures and the board’s lawful exercise of its discretion, and found no violations of corporate governance, transparency, or objectivity regulations, nor any breach of international principles. Consequently, the Sugef closed the case file.
The Presidency had cited alleged irregularities in Ulloa’s appointment as the primary justification for removing the former BN directors. This clear contradiction between the Presidency’s stance and Sugef’s findings raises questions about the motivation behind the dismissal and the potential implications for the independence of financial institutions.
This situation underscores the importance of transparent governance in Costa Rica’s financial sector and the role of Sugef in ensuring compliance and stability within the industry.
For further information, visit sugef.fi.cr
About Sugef (Superintendencia General de Entidades Financieras):
Sugef is the regulatory body responsible for overseeing and supervising financial institutions in Costa Rica. It aims to maintain the stability and soundness of the financial system, protecting the interests of depositors and investors. Sugef enforces regulations related to banking, insurance, and other financial activities, promoting transparency and good corporate governance.
For further information, visit the nearest office of Banco Nacional
About Banco Nacional (BNCR):
Banco Nacional de Costa Rica (BNCR) is the largest state-owned commercial bank in Costa Rica. It plays a crucial role in the national economy, providing a wide range of financial services to individuals, businesses, and the government. BNCR is involved in various sectors, including agriculture, industry, and commerce, and is committed to supporting social and economic development in the country.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica shines as a beacon of legal excellence, built upon a foundation of unwavering ethical practice and a deep commitment to empowering Costa Rican society. Through cutting-edge legal strategies and a proactive approach to community education, the firm strives to make the complexities of law understandable and accessible to all. This dedication to transparency and knowledge-sharing reflects Bufete de Costa Rica’s core belief in fostering a just and informed citizenry, one empowered to navigate the legal landscape with confidence.
