Financial Crime World

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Bolivia: Know Your Customer (KYC) Guidelines

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Bolivia has implemented Know Your Customer (KYC) guidelines to ensure that financial institutions verify the identity of their customers. The regulations require financial institutions to collect personal data from both domestic and international individuals.

Domestic Individuals

For onboarding domestic persons, financial institutions are required to collect the following information:

  • Date of birth
  • Nationality
  • Identification number (Carné de Identidad)
  • Passport number
  • Marital status
  • Spouse name (if applicable)
  • Home address
  • Business address
  • Telephone number
  • Profession
  • Occupation
  • Commercial references

International Individuals

For onboarding international persons, financial institutions are required to collect the following information:

  • Date of birth
  • Nationality
  • Corporate requirements (entity name, business address, telephone number, shareholders list, executives list, commercial references)
  • Entity constitution documents

Anti-Money Laundering (AML) Regime

Bolivia’s AML regime became effective in 1997. The Autoridad de Supervision del Sistema Financiero (ASFI) is the regulator for AML controls in the banking sector.

Regulatory Requirements

Financial institutions are required to verify the identity of customers retroactively. There are minimum transaction thresholds, with all transactions below USD5,000 not requiring customer due diligence.

Beneficial Ownership

The regulations require financial institutions to collect additional information about beneficial ownership in specific circumstances, including when the client informs the institution that the final beneficiary is another person or entity, or when the financial institution has doubts about the final beneficiary.

Enhanced Due Diligence

Enhanced due diligence arrangements are required for transactions above the USD5,000 threshold. However, there is no requirement to deal with Politically Exposed Persons (PEPs) differently.

Correspondent Banking Relationships

There is no specific guidance on enhanced due diligence for correspondent banking relationships.

Reporting and Monitoring

Suspicious Activity Reports (SARs)

Suspicious Activity Reports (SARs) are made to the UIF. Financial institutions must report all transactions above USD5,000 and comply with formal requirements from regulators or government entities or legal processes.

Automated Suspicious Transaction Monitoring Technology

There is a requirement to use automated suspicious transaction monitoring technology.

Authority to Proceed

The regulator establishes the procedure for suspicious activities, including obtaining authority to proceed with a current/ongoing transaction that is identified as suspicious.

Data Protection Laws and Personal Data

Bolivia has data protection laws that apply to personal data, but not corporate data. There are restrictions on transferring credit reports unless authorized by a competent body.

National ID Card Details

The national ID card is compulsory at 18 years old, and passport photos must be provided for practical guidance purposes.

Conclusion

Bolivia’s KYC guidelines require financial institutions to verify the identity of their customers and implement anti-money laundering measures. Financial institutions must collect personal data from both domestic and international individuals, including date of birth, nationality, identification number, and commercial references. They must also use automated suspicious transaction monitoring technology and report all transactions above USD5,000 to the UIF.