Bolivia Takes Steps to Strengthen Banking Regulations Against Financial Crime

Combating Money Laundering and Terrorism Financing

Bolivia’s financial system is working towards fulfilling the requirements set by the Financial Action Task Force (FATF) for combating money laundering and terrorism financing. While the country has made significant progress, it still faces challenges in its efforts to prevent and suppress these crimes.

Progress Made

According to a recent report, Bolivia’s system meets most of the FATF 40 recommendations, with the majority of regulations and standards applied to the insurance, stock market, and financial sectors. This is a positive step towards strengthening the country’s financial regulations against money laundering and terrorism financing.

Areas for Improvement

However, there are still some areas that need attention. For example, currency exchange houses and money transfer agencies are susceptible to money laundering but not yet included in the system. Additionally, Bolivia’s Financial Intelligence Unit (FIU) lacks the means to push for legislative reforms or strengthen the efficacy of the system.

Efforts to Improve Regulation

To address these shortcomings, the FIU has drafted a law aimed at expanding the criminal classification and extending the obligation to prevent money laundering to new sectors such as currency exchange houses. The Superintendence of Banks and financial institutions is also taking steps to improve anti-money laundering measures by:

• Issuing regulations making the duties of financial institutions’ external auditors more exacting
• Applying an interinstitutional cooperation convention signed by various public entities involved in anti-money laundering efforts

Goal: Strengthen Regulations and Institutions

The authorities hope to rectify these shortcomings in the medium term. For now, Bolivia’s financial system remains vulnerable to money laundering and terrorism financing. It is crucial that the country continues to work towards strengthening its regulations and institutions to effectively prevent and suppress these crimes.

Conclusion

Bolivia must continue to prioritize combating money laundering and terrorism financing by implementing robust regulations and institutions. By doing so, the country can reduce the risk of financial crime and create a more stable and secure financial system for its citizens.