El Salvador has taken a significant step to strengthen investor protection and digital security. The Legislative Assembly’s Committee on Salvadorans Abroad, Legislation, and Government has approved a key reform that imposes prison sentences of up to twelve years for computer fraud committed by local employees against international investors.

The initiative, presented by the Nuevas Ideas party, was supported after consultations with the American Chamber of Commerce of El Salvador (AmCham), whose representatives urged lawmakers to address growing concerns about data breaches, extortion, and confidentiality violations in the outsourcing and customer service industries.

“This amendment responds to an urgent need, and that is to protect the information of our international clients,” said Karla Machón, president of AmCham El Salvador’s call center committee. She emphasized that under the current legal framework, cases involving information leaks or fraud cannot proceed if the affected client is not legally registered in El Salvador.

Machón warned that this legal gap has fostered a sense of impunity and weakened international trust. “This behavior not only generates impunity, but also limits our capacity for action and weakens the trust of our partners,” she explained.

The reform to the country’s special legislation addresses concerns expressed by foreign companies operating in El Salvador, many of which rely on the country’s growing outsourcing and business process services sector. The new legal measures are designed to ensure that employees who commit acts such as data leaks, confidentiality breaches, or extortion face clear and enforceable consequences, regardless of where the client is registered.

This move is expected to bolster El Salvador’s reputation as a secure and responsible hub for international business services, aligning with the government’s broader efforts to modernize its legal framework and attract foreign investment.