Honduras authorizes use of 1.2 billion lempiras in seized assets

Honduras has enacted a legal reform, through Legislative Decree 227-2026, allowing for the early distribution of approximately 1.2 billion lempiras in assets seized by the state. The reform modifies the Law on the Definitive Deprivation of Ownership of Assets of Illicit Origin, empowering the National Defense and Security Council (CNDS) to authorize the distribution of up to 100% of liquid assets managed by the Office of Seized Asset Administration (OABI) without waiting for a final judicial ruling.

The funds, which include bank accounts, cash deposits, and securities, will be allocated among seven state institutions. The Secretariat of Defense and the Secretariat of Security will each receive 25%, while the Public Ministry and the Judiciary will receive 15% each. The OABI will retain 10% for administrative functions, and the remaining 10% will be split equally between the National Intelligence and Investigation Directorate (DNII) and the National Anti-Crime Agency (ANC).

Because these funds are distributed before a final sentence is issued, the transfer does not constitute a permanent seizure of property. The Secretariat of Finance is required to register these amounts as a contingent obligation for restitution should the legal status of the assets change.