Financial scandal in Honduras: analysis of the Koriun case and the CNBS

The latest discovery of the National Banking and Insurance Commission (CNBS) failing to address claims of irregularities at the financial entity Koriun has ignited a heated public discussion in Honduras. The acknowledgment by CNBS President Marcio Sierra of the absence of a formal institutional reaction to official warnings has provoked anger among the impacted individuals and challenged the efficiency of financial regulation systems in the nation.

The Koriun case, which involves more than 35,000 people affected, has highlighted the need to strengthen regulatory controls and hold the competent authorities accountable. The situation has mobilized social sectors, civil society organizations, and representatives of the banking system, who are seeking to clarify the facts and prevent similar situations from recurring in the future.

Lack of institutional response and requests from impacted individuals

At a public event, the chief of the CNBS admitted that the agency received a minimum of two official complaints concerning Koriun, yet failed to promptly respond to investigate or avert potential risks. This admission triggered a flurry of responses on social networks and community forums, where victims criticized the government’s lack of concern and called for transparent answers. Those impacted, numerous of whom lost their funds and properties, blame the CNBS for serious negligence and failure to fulfill their institutional responsibilities, highlighting that warnings were consciously disregarded.

The scandal has reignited the debate on the effectiveness of early warning and financial supervision systems in Honduras, as well as on the possibility of political complicity or fears that may have prevented timely intervention. Consumer organizations and analysts have questioned how a structure identified as a pyramid scheme could operate for so long without effective controls, despite the existence of formal complaints.

In response, opposition lawmakers announced the filing of a motion to investigate the role of the CNBS in the Koriun case and to summon its president for a formal hearing. Constitutional lawyers have warned that admitting inaction could constitute a crime of omission in the exercise of public office, given the legal obligation to act on signs of fraudulent financial activity.

Various civil society groups have urged the Public Prosecutor’s Office to take swift action, perform an autonomous review of the CNBS’s operations, and establish a dedicated fund to recompense victims, utilizing confiscated assets from those accountable for the fraud. Additionally, they have sought assistance from global organizations to safeguard the rights of the impacted individuals and stop impunity.

State of the financial industry and push for caution

Due to increasing public worries, the Honduran Association of Banking Institutions (AHIBA) and legally operating banks in the country have made it clear that they have no connections with the Koriun financial institution. The banking sector asserts that Koriun has not been under CNBS supervision and is not included in the formal banking system, thus banks did not handle funds or engage in any business dealings with that organization.

Koriun presented itself on social media as an investment platform offering high returns, without any legal backing or supervisory mechanisms. It is currently being described as a pyramid scheme that has illegally attracted millions of lempiras, affecting tens of thousands of Hondurans.

The Honduran banking system has reiterated its commitment to transparency, legality, and the protection of citizens’ savings. It has also called on the public to always verify that financial institutions are properly regulated by the CNBS before making any investments and to avoid falling for promises of quick riches without backing.

Ultimately, both AHIBA and its associated banks have called on the appropriate authorities to conduct a comprehensive investigation into the matter, ensure justice is served to those accountable, and initiate preventive measures to prevent similar frauds, highlighting the resilience and dependability of the formal banking sector in Honduras.