After learning about the provisions of the new financial controls established by the United States, which include migrants and which, according to analysts, could affect the sending of remittances from that country to Guatemala, the fintech sector sees possibilities for growth despite the restrictions. In addition, a banking entity explains why it considers that the impact on the decrease in remittances through this route would be limited.
The controls issued by the President of the United States, Donald Trump, on May 19, which will come into effect in stages between 60 and 180 days, have generated diverse opinions. The executive order, called “Restoring Integrity to America’s Financial System,” seeks to strengthen financial and identification controls, including those applied to migrants without work authorization.
These measures contemplate banking reviews, monitoring of transfers and greater requirements to access financial services, as well as controls on the use of the ITIN, digital platforms and accounts linked to people without work authorization. They also include the review of consular cards, such as that of Guatemala, according to Fundesa, which considers that this could lead banks and remittance companies to tighten requirements or block risk accounts.
an opportunity
Despite these new controls, Guatemala’s fintech sector sees an opportunity for growth in digital remittances.
The Fintech Association of Guatemala explained that fintech companies are already an active part of the remittance ecosystem to Guatemala and that their participation continues to increase, especially among young migrants and digitalized users.
Currently there are multiple international platforms that, according to the association, include nine active companies with some type of remittance sending modality to Guatemala, which process transfers to the country through mobile applications and regulated digital channels. These solutions allow you to send money directly to bank accounts, digital wallets or authorized withdrawal points.
Although the entity points out that official statistics do not yet disaggregate what percentage corresponds specifically to fintech platforms and which to traditional operators, it considers that the international trend shows a sustained migration towards digital channels.
The entity indicated that it is necessary to distinguish between two realities that are often confused in public debate: informal channels and regulated digital channels.
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According to the association, informal channels may include cash couriers, hawala (an ancient and informal system of money transfer based on trust) and intermediaries without registration, forms prior to the digital era. However, he said that they carry various risks for the sender and considers that their use could increase as an unwanted side effect of banking restrictions that make access to formal services difficult.
It also explains the second modality, which includes regulated digital channels such as fintech, with companies that have money services operator (MSB) licenses in the US, supervised by FinCEN and subject to AML/KYC standards. Here he mentions platforms such as Remitly, Wise or WorldRemit. In this case, according to the association, they do not constitute informal channels, but rather a technological evolution within the regulated financial system.
Consider that the transition towards digital channels will continue regardless of political or regulatory cycles, since the migration towards their use precedes any specific measure and responds to factors such as lower cost per transaction, greater speed, traceability and accessibility from a smartphone.
The Fintech sector association states that there are other modalities, such as the so-called stablecoins and cryptocurrencies, which the sector addresses with technical rigor, making the distinction between speculative assets and stablecoins.
Other measures
When the organization was consulted about what measures the fintech sector could take to mitigate the effects of the new control measure issued by the US and facilitate remittance shipments, it explained different complementary actions.
One is regulatory compliance as a standard, since any fintech operating in the US is subject to the same obligations as traditional banking, such as Anti-money Laundering (AML) and Know Your Customer (KYC) regulations.
“The strengthening of controls does not go against the regulated sector; on the contrary, what differentiates formal, digital or traditional channels, from informal ones is precisely this compliance. The sector shares the objective that remittance flows are transparent, traceable and secure,” adds the entity.
Another action mentioned is financial education for the diaspora: ensuring that Guatemalan migrants know the regulated digital options available, their guarantees and how they work.
In addition, it proposes strengthening the local regulatory framework, since it considers that Guatemala has room to update the regulation of the reception of remittances and digital payment services, such as greater clarity for mobile wallets, use of stablecoins in payments and interoperability between platforms, aspects that it calls “maturity steps of the ecosystem that are already on the sector’s agenda.”
It also highlights public-private collaboration, which requires dialogue with various private and state entities, as well as with regional actors with experience in more developed markets.
“Impact will be limited”
Among the different perspectives with which the sectors analyze the new US controls and their possible impact in Guatemala, there is also that of Herbert Hernández, director of the Board of Directors of Bantrab.
What could be the effect on sending and receiving remittances in the banking system?
We consider that the impact will be limited, because the majority of Guatemalan migrants in the United States are not formally banked in that country. The recent measures, both the executive order of May 19, 2026, called Restoring Integrity to America’s Financial System, as well as the previous FinCEN alerts and the 1% tax that went into effect in January, mainly impact people with legal immigration status or those who use banking products such as savings accounts, credit cards, mortgages or loans in the United States.
Migrants without documents, in general, are afraid to open accounts or contract banking services, because that implies handing over personal information that they perceive as a risk of being located and eventually deported. That fear has intensified with the new regulations, which instruct regulators to treat the use of ITINs and consular IDs as possible red flags of suspicious activity under the Bank Secrecy Act.
In the flow to Guatemala, the effect we are observing is paradoxical: far from falling, remittances continue to grow. Figures from the Bank of Guatemala record a record increase in remittances during the months prior to the tax coming into force and remittances have remained stable afterwards.
Could there be migration towards platforms, mobile applications, cryptocurrencies or other informal means?
Yes, this migration towards alternative media is already happening and will foreseeably increase. What we see is that migrants resort to options that do not force them to physically appear at an agency, where they fear being the subject of immigration operations. Among these alternatives are:
- Prepaid cards, which the migrant acquires and then uses digitally to make their shipments, without going to a physical point.
- Mobile applications and digital wallets that allow you to send money from your phone.
- Cryptocurrencies, which some migrants are beginning to use to move resources outside the traditional banking system.
- Informal networks, where a third party, sometimes a US citizen, makes the shipment on behalf of the migrant.
Keep in mind that the 1% tax applies to cash shipments, cashier’s checks and money orders, but not to banked electronic transfers, which is also inducing a change in behavior towards digital channels.
The real risk of this migration towards alternative channels is twofold: on the one hand, a part of the flow could no longer be visible in the official statistics; On the other hand, informal channels expose migrants and their families to higher costs, possible fraud, and the infiltration of networks linked to money laundering. Therefore, from the formal banking system, we insist on the importance of maintaining regulated, transparent and secure channels.
What measures could the national banking system or remittance companies take to facilitate shipments?
The Guatemalan banking system has been anticipating precisely this scenario for several years, betting on the digitalization of the remittance service. In 2019, for example, Bantrab launched its Bantrab Remittances App, an application that allows migrants to send money to Guatemala quickly, securely and completely digitally, without having to go to a physical point. This type of solution is especially relevant in the current context, because it reduces the migrant’s exposure to agencies and, at the same time, promotes the banking of the recipient, who to receive the shipment must have a bank account.