Bolivia Fails to Fully Implement Anti-Money Laundering Measures, Experts Say

A recent report has revealed that Bolivia’s system for preventing and suppressing money laundering falls short of meeting international standards. The Financial Action Task Force (FATF) 40 Recommendations for Anti-Money Launderling and 8 Special Recommendations Combating the Financing of Terrorism are not fully implemented in the country.

Gaps in Implementation

While Bolivia’s financial regulatory bodies have made efforts to comply with most of the FATF recommendations, there are still significant gaps in the system. The Financial Intelligence Unit (FIU) is responsible for coordinating anti-money laundering efforts, but it lacks the power to conduct on-site supervision of financial institutions and does not have a high-ranking authority promoting an integrated policy.

Consequences

Experts say that this lack of coordination and oversight has allowed money laundering activities to go undetected and unpunished. The report highlights the absence of regulations governing currency exchange houses and money transfer agencies, which are vulnerable to money laundering.

Efforts to Address Issues

However, authorities in Bolivia are taking steps to address these issues. The FIU is drafting a law to expand the criminal classification of money laundering offenses and extend the obligation to prevent money laundering to new sectors. Additionally, the Superintendence of Banks and Financial Institutions will issue regulations requiring external auditors to be more vigilant in identifying and reporting suspicious transactions.

Interinstitutional Cooperation

Furthermore, Bolivia has signed an interinstitutional cooperation convention aimed at improving coordination among public entities involved in anti-money laundering efforts. The convention aims to increase the number of cases brought to trial, convictions, and goods confiscated from money launderers.

Challenges Ahead

Despite these efforts, experts warn that more needs to be done to fully implement anti-money laundering measures in Bolivia. Until then, the country remains vulnerable to money laundering activities, which can have serious consequences for its economy and financial stability.

Key Takeaways

• Bolivia’s system for preventing and suppressing money laundering falls short of meeting international standards.
• The Financial Intelligence Unit lacks the power to conduct on-site supervision of financial institutions and does not have a high-ranking authority promoting an integrated policy.
• Efforts are being made to address these issues, including drafting new laws and regulations.
• An interinstitutional cooperation convention has been signed to improve coordination among public entities involved in anti-money laundering efforts.