Financial Crime World

Bolivia’s Financial Regulatory Bodies Strengthen Anti-Money Laundering Measures

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Bolivia has made significant progress in implementing standards and codes set by the Financial Action Task Force (FATF) to combat money laundering and terrorist financing. According to the latest report on observance of standards and codes (ROSC), Bolivia’s system for preventing and suppressing money laundering meets most of the FATF’s 40 recommendations.

Key Findings

  • The country’s anti-money laundering regime applies to the insurance, stock market, and financial sectors.
  • However, it does not cover other high-risk activities such as currency exchange houses or money transfer agencies.
  • The Financial Information Unit (FIU) has taken the lead in combating money laundering, with responsibility for regulatory, supervisory, and financial intelligence functions.

Challenges

  • The FIU lacks the authority to conduct on-site supervision of the financial system, a limitation that has been criticized.
  • Sectoral superintendences responsible for overseeing specific sectors do not supervise compliance with anti-money laundering standards.
  • There is no high-ranking authority promoting an integrated anti-money laundering policy, leaving the FIU to carry out this task without sufficient resources or powers.

Initiatives to Strengthen Anti-Money Laundering Regime

  • The FIU has drafted a law to expand the criminal classification of money laundering offenses and extend the obligation to prevent such crimes to new sectors, including currency exchange houses.
  • The Superintendence of Banks and Financial Institutions is set to issue regulations requiring external auditors to be more diligent in their duties.
  • Bolivia has signed an interinstitutional cooperation convention with various public entities involved in anti-money laundering efforts. This agreement aims to enhance cooperation and coordination among agencies, leading to better results in terms of cases brought to trial, convictions, and goods confiscated.

Conclusion

Bolivia is taking decisive steps to strengthen its financial regulatory framework and combat money laundering and terrorist financing more effectively. With these initiatives underway, the country is well on its way to meeting its obligations under the FATF standards and codes.