Provides advice on how to perform due diligence and in what areas it is necessary for a U.S. company. Includes information on the U.S. Commercial Service International Company Profile service.
Last Published: 7/21/2019

U.S. firms should be cautious when doing business in Nicaragua.  The Nicaraguan government has publicly said the U.S. is funding the “terrorist” opposition and some U.S. contacts have been specifically targeted due to their association.  U.S. firms may be subject to additional scrutiny by the Nicaraguan government under the aegis of terrorism financing and money laundering legislations.  These laws may be used to investigate or interdict the assets of any businesses and persons suspected of being linked to acts of money laundering or financing terrorism, terms which the government interprets broadly and with prejudice against perceived political opponents.  Furthermore, there is a significant reputational risk for Americans doing business in Nicaragua as the U.S. government continues to pursue sanctions against those involved in corruption and the violation of human rights.

Thorough due diligence can mitigate some of the risk inherent in doing business in Nicaragua.  Before finalizing any contract, agreement, or relationship, U.S. companies are urged to obtain information on the bona fides of the contracting firm, including reliable business and financial references.  For commercial transactions, requiring cash in advance or negotiating a letter of credit is advisable until a payment track record is established.

The Embassy’s Economic Section can provide assistance in identifying potential business partners through its International Partner Search. Representation or distribution agreements should include an arbitration clause and be reviewed by a local attorney.  See the Investment Climate Statement for more information.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.