How do you manage legal aspects during periods of instability or crisis, and how does your legal strategy align with the overall business strategy to ensure organisational resilience? 

During times of instability or crisis, it is crucial to start with a comprehensive analysis of the causes behind the situation and the impacts they may have on the organisation. 

Frequently, such situations lead to the issuance of new laws, decrees, resolutions, or regulations aimed at regulating or mitigating these issues. Therefore, it is important for the legal department to stay alert to regulatory changes by reviewing official sources such as the official gazette, electronic commerce gazette, or, specifically within the banking sector in Bolivia, the circulars and compilation of financial regulations issued by the Financial System Supervisory Authority (ASFI). 

Once modifications or new regulatory provisions are identified, legal advisors must coordinate the necessary actions with various departments within the organisation and update relevant internal regulations. This ensures that the legal guidelines we establish protect the organisation’s interests and align with the business strategy. 

Another essential task for the legal department in these situations is to review contracts with other parties, ensuring that both rights and obligations are clearly defined, and that the contract’s purpose is not adversely affected by the crisis. If necessary, amendments or modifications agreed upon with the parties should be made. 

Additionally, it is crucial that, during a crisis, the legal department works collaboratively, informing all staff about key issues and giving them the opportunity to propose solutions to potential problems. 

Effective communication within the organisation will be key to managing instability. This requires establishing well-defined corporate governance guidelines that outline the mechanisms and procedures for keeping governance bodies, such as the Shareholders’ Assembly, the Board of Directors, and senior management, adequately informed and equipped to make strategic decisions.  

Equally important is providing accurate and reliable information to various stakeholders, particularly clients, who tend to feel more secure when continuously informed about the organisation’s actions to address a crisis. 

Finally, it is vital to develop business continuity plans, succession and emergency plans, and utilise technology to enable continuous monitoring of the situation. This ensures that necessary actions can be taken swiftly and efficiently, avoiding contingencies that might impact the organisation. 

What measures has your company taken to incorporate sustainability practices into its core business operations, and how does the role of the general counsel contribute to promoting and ensuring sustainable practices within the organisation? 

Banco Unión has long had a corporate social responsibility policy with several pillars, including financial inclusion and education, high-quality and warm services, employee wellbeing, environmental care, and social interaction. Within these pillars, Banco Unión aims to conduct its financial activities in a sustainable and efficient manner, promoting awareness initiatives among its key stakeholders.  

Internally, Banco Unión has implemented practices communicated to all employees through various channels, such as recycling campaigns and healthy eating campaigns, to raise awareness about environmental protection and personal health among staff.  

Moreover, the bank has developed exclusive green loans with special conditions for individuals or entities seeking loans for environmentally beneficial purposes, such as the purchase of eco-friendly vehicles. 

Additionally, the bank has a corporate social responsibility donation programme, which includes a donation plan for various charitable causes requested by society, as well as a programme called Incubaunión. This programme supports the agro-food sector by providing training and resources to small producers in financial education and entrepreneurship to add value to their products. 

These practices ensure that our institution’s operations and services are carried out within a framework of sustainability, with significant participation and legal guidance. Our department reviews the characteristics of projects to ensure compliance with banking sector regulations and obtain the necessary approvals from relevant bodies, such as the shareholders’ assembly and the board of directors.  

The legal department also advises negotiating and drafting agreements with various entities to implement these programmes. 

In your opinion, what are the main trends currently relevant in your country (whether legal, political, economic, or business-related)?  

In Bolivia, a significant trend that has resurfaced and may have notable effects on the financial system is the use of crypto assets. Previously, these were expressly prohibited by national regulations as they were not considered legal tender. However, following an analysis by the Central Bank of Bolivia and recommendations from the Financial Action Task Force (GAFILAT), Resolution No. 82/2024 was issued, allowing the use, trading, and negotiation of crypto assets. 

Crypto assets are based on blockchain technology, which does not require the involvement of financial entities and falls outside the supervisory scope of the regulatory authority ASFI. However, they represent an alternative for developing various economic and commercial activities, enabling inclusion for individuals who previously could not meet financial institutions’ requirements and thus lacked access to their services. 

The advantages of using crypto assets include inclusion, cost reduction, efficiency, total user control over these assets, and investment diversification. However, experiences from other countries show that a major risk associated with crypto assets is their high volatility. 

In conclusion, to mitigate the impact of this trend, financial entities should develop digital banking alternatives that facilitate access to their services for clients. They should also monitor regulatory developments related to crypto assets and swiftly adopt necessary measures to mitigate any risks.