The CNBS and its role in the Koriun scam: an analysis of its inaction

The frustration among over 35,000 Hondurans impacted by the Koriun Inversiones pyramid scheme continues to escalate, as the National Banking and Insurance Commission (CNBS) faces backlash for its lack of action regarding the scam. The victims accuse the financial regulatory body of neglecting them and hold both judicial and administrative authorities accountable for their lack of response.

The inaction of the CNBS regarding fraudulent activities

Since the initial reports of irregularities at Koriun emerged, the CNBS was informed of the situation but did not implement effective actions to curb the extent of the deception. Even after getting formal alerts, the regulatory authority permitted the deceit to expand unchecked for months. Currently, those accountable for the fraud are still free, and the affected individuals remain without solutions or assurances of justice.

“They assured us they would look into it, they assured measures would be taken, yet the CNBS has been passive through negligence. We remain without solutions, without funds, without fairness,” one of the impacted individuals expressed to the press. This sense of neglect resonates with numerous people, who believe they have been let down both by those at Koriun who are directly accountable and the authorities who, they claim, ought to have acted sooner.

Absence of openness and doubts about justice

A primary grievance from those impacted is the opacity in actions by the CNBS. Even with formal grievances and current probes, the agency hasn’t provided a public document outlining the misdeeds committed or the regulatory oversights that permitted Koriun’s prolonged activity. This opacity has amplified doubts that certain financial agents implicated in the fraud might be receiving political shielding.

Numerous areas of the nation have criticized that the CNBS not only overlooked identifying the misconduct promptly, but has also been negligent in delivering essential details regarding its management of the issue. As stated by a legal representative for the victims, this inaction by the regulatory entity only worsens the scenario: “It is intolerable that a regulatory body missed spotting a swindle of such scale in a timely manner. Not only did they neglect to thwart it, but currently, they are neglecting to fulfill their duties.”

Demands for global involvement

In response to the lack of institutional support and increasing discontent among the impacted individuals, numerous victim groups have opted to extend their grievances beyond their country’s boundaries. Non-governmental organizations and those impacted are officially seeking assistance from international entities like the Organization of American States (OAS), the United Nations (UN), and Transparency International. The aim of these appeals is for these organizations to oversee the management of the situation and, specifically, the reaction of Honduran authorities towards the Koriun scandal.

One individual representing the impacted group stated: “The government must safeguard its people, not shield those committing fraud. This situation involves two offenses: Koriun’s wrongdoing and the negligence of the CNBS for their inaction.” This statement reveals doubt regarding the national authorities’ capability to address fraudulent activities and uphold justice.

Institutional tension and the challenge of governance

The situation once again exposes the vulnerabilities of the financial supervision system in Honduras and the tensions within the institutions responsible for ensuring transparency and justice. The lack of a strong response from the CNBS reflects a gap in the state’s capacity to handle crises of this nature, which could have broader implications in terms of confidence in financial institutions and the country’s governance.

Those affected, meanwhile, continue to wait for a resolution that will allow them to recover their losses and ensure that those responsible for the fraud are brought to justice. The lack of effective action and the opacity surrounding the case underscore a persistent challenge for Honduran authorities: how to restore public confidence in the face of growing mistrust in the handling of crises of this kind.