The Financial System Supervisory Authority of Bolivia clarified that fund retention orders for municipal tax debts are issued by the competent authority, not by the regulator or financial institutions. In La Paz, the Municipal Tax Administration issued orders covering debts related to vehicles and real estate, with about 160,000 accounts currently subject to retention. The authority receives and routes orders to financial institutions on the same day, and institutions have 24 hours after receipt to execute them. Financial institutions must notify affected customers, provide a copy of the legal instruction and explain the retention’s origin, amount and reason. They must protect legally exempt funds, including salaries, pensions and social benefits, and release such resources in accordance with applicable rules. Only the authority that ordered a retention may direct its removal. The supervisory authority may impose corrective measures and sanctions where institutions fail to meet disclosure requirements or protect exempt funds.
2026-09-10Financial System Supervisory Authority of Bolivia
Financial System Supervisory Authority of Bolivia clarifies municipal tax fund retention process affecting about 160,000 La Paz accounts
The Financial System Supervisory Authority of Bolivia clarified that competent public authorities, rather than the regulator or banks, order fund retentions for tax debts. About 160,000 La Paz accounts are subject to municipal orders related to vehicle and real estate debts. Banks must execute routed orders within 24 hours, inform customers and protect legally exempt funds.