Financial Crime World

Bolivia’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Regime

Overview

This report assesses Bolivia’s efforts to prevent and combat money laundering, as well as its capacity to confiscate assets related to such crimes. The Bolivian authorities have a good understanding of the risks associated with Money Laundering (ML) and Terrorist Financing (TF), but there is room for improvement in coordinating AML/CFT issues among different agencies.

Understanding of Risks

  • Good understanding: The Bolivian authorities have a good understanding of the risks associated with ML/TF.
  • Room for improvement: However, there is room for improvement in coordinating AML/CFT issues among different agencies.

Financial Intelligence Unit (FIU)

  • Decentralized entity: The FIU is a decentralized entity that plays a crucial role in investigating ML/TF cases, analyzing data, and disseminating information to prevent such crimes.
  • Access to databases: It has access to various databases and has signed inter-agency cooperation agreements to facilitate its functions.

Investigation of ML/TF

  • System in place: Bolivia has a system in place for detecting, identifying, and prosecuting ML.
  • Coordination between agencies: However, institutionalized coordination is lacking at certain stages.

Asset Forfeiture

  • Recognition of importance: The country recognizes the importance of forfeiting assets related to ML and its predicate offenses.
  • Limited measures: However, it has limited measures in this area. It has developed asset forfeiture procedures within AML/CFT policies but these are mostly applicable to drug trafficking and human trafficking cases, not all ML cases.

Authority for Asset Forfeiture

  • DIRCABI: The Directorate for the Registration, Control, and Administration of Seized Assets (DIRCABI) is responsible for registering, controlling, and administering seized assets.
  • Limited powers: However, its powers are limited by laws related to specific crimes and judicial management authorizations.

Limitations in Prosecution and Investigation

  • Public Prosecutor’s Office: The Public Prosecutor’s Office mainly investigates ML cases associated with drug trafficking and corruption.
  • Judiciary strategy: The Judiciary has implemented a strategy for monitoring ML proceedings, but the measures have been recently implemented, and there is room for improvement in sentencing rates.
  • Special investigative techniques: Legal limitations to applying special investigative techniques in ML and other high-impact predicate offenses affect the results of investigative actions and the prosecution of cases to achieve sentences.
  • Lack of protocols: The lack of protocols for parallel financial investigations also affects the results of investigative actions and the prosecution of cases to achieve sentences.