Why the CNBS did not act on the Koriun pyramid scam in Honduras

The frustration among over 35,000 Hondurans impacted by the Koriun Inversiones pyramid scheme keeps escalating, while criticism mounts against the National Banking and Insurance Commission (CNBS) for not taking action against the scam. Those harmed express their disappointment with the agency in charge of overseeing financial matters and accuse both judicial and administrative entities of not addressing the issue.

The CNBS’s failure to act in the face of fraud

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.”

Appeals for global intervention

In response to an institutional void and increasing dissatisfaction among those impacted, various victim groups have chosen to extend their appeals outside their country. Non-governmental organizations and affected persons are officially seeking the assistance of global entities like the Organization of American States (OAS), the United Nations (UN), and Transparency International. The purpose behind these petitions is for these organizations to oversee the crisis management and, specifically, the approach of Honduran institutions towards the Koriun scandal.

One of the representatives of those affected said: “The state has an obligation to protect its citizens, not to cover up for fraudsters. This is a double crime: the one committed by Koriun and the one allowed by the CNBS by doing nothing.” This sentiment reflects skepticism about the ability of national authorities to tackle fraud and ensure that justice is done.

Institutional tension and the challenge of governance

The scenario once more highlights the weaknesses of the financial oversight system in Honduras and the frictions within the entities accountable for upholding transparency and justice. The absence of a robust reaction from the CNBS signifies a shortfall in the state’s ability to manage situations of this sort, potentially leading to wider repercussions concerning trust in financial institutions and the governance of the country.

Those impacted are still anticipating a resolution that will enable them to regain their losses and ensure that the individuals responsible for the deception are held accountable. The absence of decisive measures and the lack of transparency surrounding the situation highlight an ongoing issue for Honduran officials: how to rebuild public trust amidst increasing skepticism in managing crises like these.