The CNBS at the center of controversy for failing to prevent the Koriun fraud

The outrage of more than 35,000 Hondurans affected by the Koriun Inversiones pyramid scam continues to grow, while the National Banking and Insurance Commission (CNBS) faces criticism for its inaction in the face of the fraud. Those affected denounce the abandonment by the body responsible for financial supervision and accuse both the judicial and administrative authorities of failing to respond.

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

Since news of irregularities at Koriun first emerged, the CNBS was informed of the problem but did not implement effective actions to stop the extent of the fraudulent activities. Despite being formally alerted, the regulatory agency permitted the deceit to expand without restrictions for several months. Up to now, the people accountable for the fraud have not been caught, and those affected still lack responses or assurances of justice.

“They assured us of a thorough examination, committing to take measures, but the CNBS has been neglectful by doing nothing. As of now, we remain without explanations, without funds, and without fairness,” expressed one of the impacted individuals to the press. This sense of neglect is echoed by many others who feel let down both by those directly accountable at Koriun and by the officials who, according to them, ought to have taken action sooner.”

Lack of transparency and suspicions of impunity

One of the main complaints of those affected is the lack of transparency on the part of the CNBS. Despite formal complaints and ongoing investigations, the agency has not issued a public report detailing the irregularities committed or the regulatory failures that allowed Koriun to exist for so long. This lack of transparency has fueled suspicions that some of the financial operators involved in the fraud may be receiving political protection.

Various sectors of the country have pointed out that the CNBS not only failed to detect the fraud in time, but has also been remiss in providing relevant information on how it is handling the situation. According to a lawyer representing those affected, this lack of action by the supervisory body only exacerbates the situation: “It is unacceptable that a supervisory body failed to detect a scam of this magnitude in time. Not only did they fail to prevent it, but today they are failing to face up to their responsibilities.”

Calls for international intervention

Given the lack of institutional response and increasing dissatisfaction among the impacted parties, numerous victim groups have opted to advance their demands outside of national limits. Both civil society organizations and impacted individuals are officially seeking backing from international entities like the Organization of American States (OAS), the United Nations (UN), and Transparency International. These requests aim for these entities to supervise the management of the crisis and, specifically, the behavior of Honduran institutions concerning the Koriun scandal.

A spokesperson for the impacted individuals expressed: “The government must safeguard its people, not shield wrongdoers. This is a dual offense: the misdeed by Koriun and the negligence of the CNBS for not taking action.” This opinion showcases doubt regarding the national authorities’ capability to address fraud and guarantee fair treatment.

Institutional conflict and the governance dilemma

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.

Individuals impacted are still waiting for a resolution that will enable them to regain their losses and guarantee that those accountable for the scam are prosecuted. The absence of effective measures and the lack of transparency in this case highlight a continuing issue for Honduran officials: finding a way to rebuild public trust amidst the increasing skepticism in the management of such crises.