Financial Crime World

Bolivia Steps Up Efforts to Combat Financial Crime with Strengthened Banking Regulations

In a bid to crack down on financial crime, Bolivia’s authorities are working to improve its system for preventing and suppressing money laundering. The country’s Financial Intelligence Unit (FIU) is at the forefront of these efforts, tasked with implementing measures to combat anti-money laundering (AML) and combating the financing of terrorism (CFT).

Current State of Affairs

According to a recent report, Bolivia’s system currently meets most of the 40 recommendations set out by the Financial Action Task Force (FATF) for AML and CFT. However, there are still areas that require improvement, including:

  • The inclusion of activities such as currency exchange houses and money transfer agencies in the country’s anti-money laundering framework
  • Enhancing the effectiveness of the system

Efforts to Strengthen Regulations

The FIU is responsible for coordinating Bolivia’s efforts to combat financial crime. To address this issue, the FIU has drafted a law aimed at:

  • Expanding the criminal classification and extending the obligation to prevent money laundering to new sectors
  • Improving the effectiveness of the system

Additionally, the Superintendence of Banks and Financial Institutions will soon issue a regulation requiring external auditors of financial institutions to be more diligent in their duties.

Interinstitutional Cooperation

The FIU is also set to begin applying an interinstitutional cooperation convention recently signed by various public entities involved in anti-money laundering efforts, with the goal of:

  • Improving outcomes such as case convictions and asset confiscation

Medium-Term Goals

Bolivia’s authorities are keen to rectify these shortcomings in the medium term, recognizing the importance of a robust system for preventing and suppressing financial crime. The country’s banking sector will benefit from these strengthened regulations, which will help to:

  • Restore public confidence
  • Attract foreign investment

By strengthening its banking regulations, Bolivia aims to create a more secure and transparent financial environment, ultimately benefiting both domestic and international investors.