Bolivia's Financial System Supervisory Authority clarified that it does not order fund freezes arising from municipal tax debts but channels instructions from the competent authority to financial institutions and supervises their execution. About 160,000 accounts are currently subject to orders issued by La Paz's Municipal Tax Administration to collect vehicle and property tax debts. The authority forwards freeze instructions to financial institutions on the day they are received, after which institutions have 24 hours to execute them. Financial institutions must notify affected customers, provide a copy of the underlying legal instruction and explain the freeze's origin, amount and reason. They must also protect legally exempt funds, including salaries, pensions and social benefits, and release such funds where required. Only the authority that ordered a freeze may direct its removal, while the Financial System Supervisory Authority may inspect institutions and impose sanctions or corrective measures for noncompliance.
2026-09-09Ministry of Finance (Bolivia)
Bolivia's Financial System Supervisory Authority clarifies municipal tax fund freezes affecting about 160,000 accounts
Bolivia's Financial System Supervisory Authority clarified that municipal tax authorities, not the supervisor or financial institutions, order fund freezes. About 160,000 accounts are subject to La Paz municipal orders for vehicle and property tax debts. Financial institutions must execute orders within 24 hours, inform customers and protect legally exempt funds.