Bolivia Takes Steps to Improve Anti-Money Laundering Efforts, Experts Say

Financial Institutions Still Lacking in Certain Areas

A recent report has highlighted Bolivia’s progress in implementing standards and codes for anti-money laundering (AML) and combating the financing of terrorism. While the country’s financial system is largely compliant with the 40 Recommendations of the Financial Action Task Force (FATF), there are still areas that need improvement.

Progress Made in Implementing AML System

According to experts, Bolivia’s system to prevent and suppress money laundering is mostly complete in the insurance, stock market, and financial sectors. However, it does not cover other activities that are susceptible to money laundering, such as currency exchange houses or money transfer agencies.

• The Financial Intelligence Unit (FIU) has drafted a law to expand the criminal classification and extend the obligation to prevent money laundering to new sectors, such as currency exchange houses.
• The Superintendence of Banks and Financial Institutions will issue a regulation making the duties of financial institutions’ external auditors more exacting.

Challenges Still Facing Bolivia’s AML Efforts

Despite these initiatives, there are still challenges facing Bolivia’s AML efforts. One of the main concerns is that the FIU lacks the means to push for legislative reforms on its own or to strengthen the efficacy of the system. There is also no high-ranking authority promoting an integrated anti-money laundering policy.

• The FIU does not have the necessary resources to conduct on-site supervision of financial institutions.
• There is a lack of regular reporting on compliance with AML standards.
• Coordination between different agencies involved in combating money laundering is limited.

Path Forward

Experts say that while Bolivia has made progress in implementing its AML system, there is still much work to be done to ensure that the country’s financial institutions are adequately protected from money laundering and terrorist financing. To achieve this, it is essential to address the remaining challenges and strengthen the AML framework.

• On-site supervision of financial institutions by the FIU or sectoral superintendence is necessary.
• Regular reporting on compliance with AML standards should be implemented.
• Greater cooperation and coordination between different agencies involved in combating money laundering are needed.