Financial Crime World

Bolivia Ranked Among Highest-Risk Countries for Money Laundering and Terrorist Financing in Latin America

Basel Anti-Money Laundering (AML) Index Highlights Concerns

The 2021 Basel AML Index has ranked Bolivia as one of the highest-risk countries for money laundering and terrorist financing in Latin America. The country scored a dismal 6.14 out of 10, down from its 2020 score of 6.2.

The Basel AML Index: A Comprehensive Benchmark

The Basel AML Index is a widely-respected benchmark that assesses countries’ vulnerabilities to money laundering and terrorist financing. It combines 16 different indicators related to corruption, financial standards, political disclosure, and rule of law to provide a comprehensive picture of each country’s risk level.

High-Risk Environment in Latin America

Latin America has been plagued by high levels of money laundering and terrorist financing in recent years. Bolivia is no exception, with the country ranking as one of the highest-risk countries in the region. This poses a major concern for regulators and financial institutions alike.

Methodology Behind the Index

The Basel AML Index uses publicly available data from reputable sources such as:

  • Financial Action Task Force (FATF)
  • Transparency International
  • World Bank
  • World Economic Forum

The index serves as a starting point for further investigation into each country’s anti-money laundering and counter-terrorism financing efforts.

Wake-Up Call for Bolivia’s Authorities

Bolivia’s low score is a wake-up call for the country’s authorities, who must take immediate action to strengthen their AML/CFT regime and reduce the risk of money laundering and terrorist financing in the financial system. The country’s authorities must work towards implementing effective measures to combat these threats and protect its financial integrity.

Key Takeaways

  • Bolivia ranked among highest-risk countries for money laundering and terrorist financing in Latin America
  • Country scored 6.14 out of 10 in the 2021 Basel AML Index, down from 6.2 in 2020
  • High levels of corruption, financial standards, political disclosure, and rule of law contribute to the country’s high risk level
  • The Basel AML Index serves as a starting point for further investigation into each country’s anti-money laundering and counter-terrorism financing efforts