Bolivia Falls Short on Anti-Money Laundering Regulations

Despite significant progress in combating money laundering, Bolivia’s financial system has been found lacking in several key areas, according to a report by the country’s Financial Intelligence Unit (FIU).

Key Findings

• While Bolivia’s system to prevent and suppress money laundering fulfills most of the 40 recommendations set forth by the Financial Action Task Force (FATF), there are still significant gaps that need to be addressed.
• The system does not include other activities susceptible to money laundering, such as currency exchange houses or money transfer agencies.

Areas for Improvement

• Lack of on-site supervision of the financial system
• Failure of sectoral superintendence bodies to supervise compliance with anti-money laundering standards
• No high-ranking authority promoting an integrated anti-money laundering policy, leaving the FIU to carry out this role without sufficient resources or powers

Initiatives to Strengthen Anti-Money Laundering Regime

• Drafting a law to expand the criminal classification and extend the obligation to prevent money laundering to new sectors, such as currency exchange houses
• Regulation making the duties of financial institutions’ external auditors more exacting
• Interinstitutional cooperation convention with various public entities involved in anti-money laundering efforts aimed at achieving better results in terms of cases brought to trial, convictions, and goods confiscated

Conclusion

The report highlights the need for greater cooperation between institutions and a more integrated approach to combating money laundering in Bolivia. With these initiatives underway, the country hopes to rectify its shortcomings and bring itself in line with international anti-money laundering standards.

References:

• Financial Action Task Force (FATF)
• Financial Intelligence Unit (FIU)