Criminals, terrorists and sanctions: A Latin American legal take on cross-border risk
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At the ITFA Americas Annual Conference in Miami, Trade Treasury Payments (TTP) sat down with Marcos Lopez Bonilla, Senior Corporate Counsel at EPGD Business Law, to explore how legal advisory work is evolving amid shifting compliance demands, cross-border complexity, and the growing role of artificial intelligence.
Lopez Bonilla said, “A lot of our work involves helping Latin American financial institutions, particularly those in Ecuador, Colombia, Guatemala and Honduras, navigate the US regulatory framework. That includes everything from remittance providers and money services businesses to banks looking to establish a presence here.”
While the broader macroeconomic landscape has undoubtedly added pressure, many of his clients remain focused on the core question of ensuring compliance while building a sustainable operation in the United States. According to Lopez Bonilla, this increasingly requires clarity around how US law treats different forms of risk.
One key area of change has been in the treatment of OFAC sanctions versus foreign terrorist organisations (FTOs).
Lopez Bonilla said, “There’s a notable difference in the liability structure. If a party in, say, Mexico, ends up transacting with an FTO, they may face criminal proceedings, even if they’re not based in the United States. So, for Latin American counterparties, that creates a heightened risk and leads to more robust compliance controls.”
For legal practitioners, that has meant an uptick in due diligence requests and onboarding reviews, particularly for clients working in high-risk jurisdictions or sectors. And while that work can be complex, Lopez Bonilla believes it’s necessary, and points to it as an example of how regulatory decisions are shifting risks in subtle but important ways.
Yet the conversation wasn’t all about compliance and sanctions. A panel on legal technology and artificial intelligence also left a strong impression.
Lopez Bonilla said, “The legal industry is often slow to change. But if we don’t start integrating tools like AI into our workflows, we risk falling behind. Used properly, these technologies can actually make us better at serving clients, by systematising legal knowledge and enabling more consistent support.”
He stressed that lawyers who understand both the legal content and the logic of how AI tools work are well-positioned to create applications that help clients answer questions faster, without always relying on billable hours. The result, he argued, is augmentation.
His broader message to the industry was one of proactive engagement with change.
Lopez Bonilla said, “Don’t fear change, but be wary of it. Be proactive. Things are moving quickly, and if your compliance programmes and internal controls don’t adapt, you could find yourself exposed. Business as usual is no longer safe.”
For cross-border legal advisers, that message rings particularly true. Whether dealing with sanctions, remittances, or artificial intelligence, the challenge is to keep pace or fall behind.
Key Topics
- Cross-border banking and entry into the United States market
- Regulatory navigation for foreign financial institutions
- Compliance and sanctions risk management
- Remittances and money services businesses
- The role of AI in legal and financial services
Key Insights
Expert Analysis
Marcos Lopez Bonilla, Corporate Attorney at EPGD Business Law, works closely with Latin American financial institutions looking to establish a presence in the United States. Much of his work centres on remittance businesses, money services providers and banks seeking to navigate the complexities of US regulation. From his experience, the biggest challenge is not entering the market itself, but understanding and complying with the legal framework that governs it. Questions often arise around how foreign entities are perceived and what is required to operate safely within US regulatory expectations. He points in particular to the distinction between OFAC sanctions and Foreign Terrorist Organisation classifications. The latter carries significantly greater legal risk, including potential criminal exposure. In practice, this has led to more rigorous compliance processes, with firms placing greater emphasis on due diligence, onboarding checks and ongoing monitoring of counterparties. Marcos also notes that recent political changes have had a dampening effect on some cross-border activity. In this environment, firms need to stay alert and responsive rather than assuming stability. Alongside these regulatory challenges, he sees clear potential in the use of AI within legal practice. While the profession has traditionally been cautious, there is an opportunity to use technology to deliver more accessible and efficient client support. The key, in his view, is to remain open to change while maintaining strong controls and sound judgement.— Marcos Lopez Bonilla
Key Findings
- Foreign banks and financial firms often underestimate the complexity of US regulation
- There is a meaningful legal distinction between sanctions exposure and involvement with designated organisations, with very different consequences
- Enhanced due diligence has become standard practice across the sector
- Recent policy shifts have contributed to a more cautious approach among foreign institutions
- AI remains underused in the legal sector, but offers clear opportunities for those willing to adopt it
Implications
- Foreign financial institutions will continue to face high regulatory expectations when entering the US market
- Compliance functions will need to be more robust, particularly in relation to sanctions and client due diligence
- Changes in political leadership may continue to influence the pace of cross-border expansion
- Law firms that embrace technology are likely to improve both efficiency and client service
- Firms that adapt quickly to regulatory and technological change will be better positioned over time
Key Takeaways
- A strong compliance framework is essential for cross-border financial activity
- Understanding US regulation is critical before entering the market
- Sanctions and high-risk classifications require careful and ongoing scrutiny
- Technology, particularly AI, offers practical ways to improve legal service delivery
- Being proactive rather than reactive is key in a fast-moving regulatory environment
