Friday, July 24, 2026.
Uruguay
This week, we turn our attention to Uruguay, a country that may be modest in size but carries an impressive reputation for stability, professionalism, and institutional strength. Located between Argentina and Brazil, Uruguay has distinguished itself as one of Latin America’s most dependable business environments, supported by strong democratic traditions, transparent institutions, a highly educated population, and a growing technology and services sector.
Beyond its well-known cultural traditions, from football and mate to its celebrated coastal cities, Uruguay has become an increasingly important market for international companies, legal professionals, investigators, risk advisors, and compliance specialists. Its position as a regional hub, combined with its openness to foreign investment and digital innovation, creates opportunities while also requiring careful attention to due diligence, regulatory compliance, fraud prevention, and the verification of business relationships.
In this week’s newsletter, we explore Uruguay from the perspective of investigation, risk management, security, and professional services. We will consider the country’s commercial environment, the challenges organizations may encounter, and the value of having reliable local resources when conducting business, protecting assets, or resolving sensitive matters. As always, our objective is to provide practical insight while highlighting the importance of trusted professional relationships throughout Latin America.
Brett Mikkelson
Founder, B.M. Investigations, Inc. – Private Investigations in Panama
The Central Bank of Uruguay Approves Regulations for Virtual Asset Service Providers (VASPs)
On July 10, the Central Bank of Uruguay (BCU) approved the final regulations governing Virtual Asset Service Providers (VASPs), establishing a comprehensive regulatory framework for companies engaged in activities involving crypto-assets, virtual assets, and blockchain technologies within the country.
The new regulation introduces a formal regime for licensing, supervision, corporate governance, compliance, and anti-money laundering (AML) obligations applicable to covered entities.
It regulates, among other activities, the exchange of virtual assets, the conversion of virtual assets into fiat currencies, the transfer, custody, and administration of virtual assets, as well as the provision of financial services related to their issuance or commercialization. The framework also addresses certain activities conducted through smart contracts and decentralized protocols.
One of the regulation’s most significant features is the establishment of a compliance timeline for existing market participants. Companies currently engaged in regulated activities may submit authorization applications to the BCU between September 1, 2026, and March 31, 2027, while new operators must obtain prior authorization before commencing operations.
The new regulatory framework requires companies to review their corporate structures, business models, compliance programs, anti-money laundering procedures, custody and client protection mechanisms, and, where applicable, adapt to the capital and corporate governance requirements established by the regulatory authority.
The regulation marks a major milestone for Uruguay’s fintech and digital asset ecosystem, providing greater legal certainty while strengthening transparency, regulatory oversight, and investor confidence across the sector.
Uruguayan Financial System Remains Strong Amid a Challenging Global Environment
Uruguay’s financial system continues to demonstrate high levels of stability and resilience, according to the latest assessment by the Financial Stability Committee. Authorities concluded that the country’s financial institutions remain in a strong position, supported by adequate liquidity, solid capitalization, and prudent risk management practices, all of which enhance the sector’s ability to withstand periods of economic uncertainty.
Although the global economic environment continues to be shaped by geopolitical tensions, market volatility, and slower worldwide economic growth, the report emphasizes that Uruguay’s banking system maintains strong fundamentals and shows no significant vulnerabilities that would threaten its short-term stability.
Financial authorities stated that they will continue to closely monitor external risks that could affect the national economy, as well as developments in international markets and global financial conditions. They also reaffirmed their commitment to maintaining rigorous supervision and strengthening regulatory mechanisms to preserve confidence in the financial system.
The stability of Uruguay’s financial sector remains a key driver of the country’s competitiveness, fostering a favorable environment for investment, improving access to financing, and supporting business development. This strong financial foundation further reinforces Uruguay’s reputation as one of Latin America’s safest and most reliable destinations for investment and commercial activity.
Carlos Negro Led Meeting with Police Chiefs to Strengthen Security Strategy
Interior Minister Carlos Negro chaired a strategic meeting with the National Police Command, national directors, and police chiefs from Uruguay’s 19 departments to coordinate the key operational and strategic priorities that will guide law enforcement efforts across the country in the coming months.
The meeting focused on strengthening public security through enhanced coordination among police agencies, increased human and material resources, and the incorporation of new technologies to improve crime prevention and criminal investigations.
Among those in attendance were Secretary General Gerardo Siri, National Police Director José Manuel Azambuya, Deputy Secretary General Rubén Amato, National Police Deputy Directors Julio Sena and Robert Taroco, as well as departmental police chiefs and directors of national police units.
Authorities reviewed the priorities established by the Executive Branch in the national budget review, which includes reallocating public funds to reinforce police presence throughout the country. The plan provides for the recruitment of new officers, the acquisition of additional vehicles, and the deployment of advanced technologies to enhance patrol operations, crime control, and investigative capabilities.
During his remarks, Minister Negro praised the daily commitment of police personnel and reaffirmed the government’s institutional support for officers serving throughout Uruguay. He emphasized that law enforcement operates wherever criminal activity occurs, including against organized criminal groups, and stated that the Ministry will utilize all available resources to support operational deployments and improve officer safety.
The Minister also stressed that the current administration is implementing a comprehensive security strategy developed jointly with the National Police to combat crime, organized criminal networks, and violence.
Operational and Investigative Results
During the meeting, several national police directorates presented updates on ongoing investigations, specialized operations, and training programs.
The General Directorate of Police Information and Intelligence outlined progress in developing a centralized criminal intelligence system through the National Police Investigation Directorate. The new platform will provide a georeferenced database of criminal incidents, enabling investigators to cross-reference information across cases and support intelligence-led policing and evidence-based operational planning.
Among the highlighted achievements was Operation Athena, conducted in the Cerro district of Montevideo. Since its launch in November of last year, authorities reported a 55% reduction in homicides, a 40% decrease in firearm-related injuries, and a 23% decline in reported shooting incidents.
Officials stated that these analytical tools improve the identification of high-crime areas, facilitate the assessment of security strategies, and strengthen criminal investigations. The methodologies have also been incorporated into the curriculum of the National Police Education Directorate for the training of future officers.
Border Security and New Police Recruits
Authorities also reviewed Operation Ancilia, an initiative designed to strengthen border and highway security through coordinated enforcement at strategically identified locations. The operation involves the Republican Guard, the Unified Command Center, the National Highway Police Directorate, the National Police Aviation Directorate, the National Police Investigation Directorate, and the police departments of Cerro Largo, Rivera, and Tacuarembó.
In addition, National Police Education Director Henry De León announced an open recruitment process to fill nearly 650 police officer positions, reinforcing both preventive patrol operations and investigative units across multiple departments.
The meeting also highlighted the training of more than 2,000 police officers to implement the Amber Alert System, designed to accelerate the search for missing children and adolescents through coordinated action among law enforcement agencies and other government institutions.
Peru and Uruguay Focus on Preparations for the Upcoming Papal Visit
Expectations continue to build ahead of Pope Leo XIV’s anticipated visit to South America, as Peru’s president-elect pledged full government cooperation while Church leaders in Uruguay outlined logistical preparations for the Pontiff’s expected return to the region in his new role as Pope.
In a statement issued on July 16, the Peruvian Episcopal Conference announced that it had received Keiko Fujimori, whose victory in Peru’s presidential election was officially confirmed on July 4.
Fujimori met with Bishop Carlos García Camader of Lurín, President of the Peruvian Episcopal Conference, along with Bishop Luis Alberto Barrera Pacheco of Callao and Monsignor Guillermo Inca Pereda, the Conference’s Acting Vice President and Secretary General.
According to the statement, the bishops discussed several issues, including the papal visit scheduled for November of this year.
“At the conclusion of the meeting, the president-elect expressed her satisfaction with the confirmation of the Holy Father’s visit and conveyed the incoming government’s willingness to coordinate with the Church on the actions necessary to ensure the success of this important pastoral event,” the Episcopal Conference stated.
The president-elect also emphasized the importance of ensuring that the Pope is able to meet with as many faithful and communities as possible throughout the country during his visit, reinforcing the message of hope, unity, and closeness that characterizes his ministry.
Although the Vatican has not yet officially announced the visit, Peru’s outgoing President, José María Balcázar, revealed details of the trip in June following his meeting with Pope Leo XIV.
According to Balcázar, the visit could last between eight and ten days in early November, with planned stops in Lima, Chiclayo, Piura, Pucallpa, and Cusco.
Uruguay Prepares for the Pope’s Visit
In May, the Uruguayan Episcopal Conference stated that, although no official date had been announced, there was a high probability that Pope Leo XIV would visit Uruguay toward the end of 2026.
However, during a working breakfast with journalists organized by the Conference on July 15, Cardinal Daniel Sturla of Montevideo said the Vatican is expected to confirm the official itinerary by the end of July.
“Almost 40 years ago we experienced the unforgettable visit of Saint John Paul II. Now we eagerly await Pope Leo. It is a source of joy not only for the Church but for all of Uruguay,” the Cardinal said.
He described the Pope as “a figure who transcends boundaries,” noting that his visit would be meaningful not only for Catholics but for people throughout Uruguay and around the world.
“We witnessed this during Pope Francis’ funeral and at the beginning of Leo XIV’s pontificate, where heads of state and representatives from around the world were present. In Uruguay, his visit will likewise be a gift for the entire nation,” Cardinal Sturla added.
The Cardinal also revealed that he extended an invitation to Pope Leo shortly after his election and that the Pontiff expressed his desire to visit both Uruguay and Argentina.
According to current plans, the visit would include stops in Montevideo and Florida, as well as a visit to northern Uruguay, with Paysandú identified as a possible destination.
Cardinal Sturla also suggested that the Pope could visit Casavalle, an underserved neighborhood on the outskirts of Montevideo where the Catholic Church operates several social outreach programs.
While awaiting official confirmation from the Vatican, the Archdiocese of Montevideo stated that it continues working with public authorities and technical teams on preparations for the visit, expressing confidence that the Pope’s arrival will strengthen hope, foster dialogue, and promote unity throughout the country.
Uruguay Modernizes Its Air Force: Why It Chose the Super Tucano to Replace Its Historic Aircraft
The Uruguayan Air Force (FAU) has begun receiving its first Embraer A-29 Super Tucano aircraft as part of a nearly USD 100 million acquisition—the largest aviation investment in the country’s recent history. Beyond replacing an aging fleet, the purchase reflects a strategic decision to prioritize operational effectiveness over acquiring high-performance supersonic fighter aircraft.
According to international affairs analyst Andrei Serbin Pont, the acquisition demonstrates how a country with limited defense resources can develop an efficient and pragmatic military strategy by focusing on mission requirements rather than prestige.
Rather than joining the regional trend toward advanced fighter jets, Uruguay identified its primary operational needs: airspace surveillance, border patrol, reconnaissance, close air support, and advanced pilot training. These missions did not require supersonic aircraft but instead demanded a reliable, versatile, and cost-effective platform capable of performing multiple roles.
Balancing Capability and Affordability
Manufactured by Brazilian aerospace company Embraer, the A-29 Super Tucano is a turboprop aircraft designed for advanced training, aerial surveillance, border security, low-speed aircraft interception, reconnaissance, and close air support. It is also capable of operating from semi-prepared airstrips, making it well suited to a wide range of operational environments.
One of its greatest advantages is its operating cost. While a modern fighter such as the F-16 can cost approximately USD 10,000 per flight hour, the Super Tucano operates at just over USD 2,000 per hour. The significant savings allow for increased pilot training, higher aircraft availability, and sustained operational readiness without placing excessive pressure on Uruguay’s defense budget.
The procurement package extends beyond the aircraft themselves. It includes flight simulators, mission equipment, pilot and technician training, spare parts, and long-term logistical support, ensuring the fleet remains operational for years to come.
A Combat-Proven Platform
Uruguay’s decision was also supported by the Super Tucano’s extensive international track record. Over the past two decades, the aircraft has become one of Brazil’s most successful defense exports, with more than 260 aircraft delivered to 22 air forces worldwide and over 570,000 accumulated flight hours.
Its reputation for reliability, operational flexibility, and low maintenance costs has made it a preferred platform for countries across Latin America, Africa, and Asia seeking to modernize their air forces without the financial burden of operating advanced fighter jets.
According to Serbin Pont, Uruguay selected a proven platform backed by a well-established regional logistics network, significantly reducing operational and maintenance risks.
A Different Defense Strategy
The acquisition comes at a time when neighboring countries are investing heavily in military modernization. Argentina has begun incorporating F-16 fighter aircraft acquired from Denmark, while Brazil continues expanding its fleet of Gripen multirole fighters.
However, Uruguay has deliberately pursued a different strategy. Rather than seeking regional military parity, the country has focused on maintaining effective control of its airspace, strengthening border security, and enhancing pilot training capabilities.
Officials evaluated several alternatives before selecting the Super Tucano, including Italy’s M-346FA, the Czech L-39NG, China’s L-15, the British BAE Hawk, Argentina’s IA-63 Pampa III, and even second-hand F-5 fighters. Ultimately, the Brazilian aircraft offered the best combination of acquisition cost, operating efficiency, logistical support, and proven international performance.
The Super Tucano acquisition does not seek to alter South America’s military balance. Instead, it reflects Uruguay’s commitment to maintaining a capable and sustainable air force aligned with its national defense priorities. By defining its operational requirements first and selecting the aircraft best suited to meet them, Uruguay has adopted a practical and financially responsible approach to defense modernization.
