Bolivia’s Anti-Money Laundering Efforts Face Scrutiny as FATF Recommendations Go Unfulfilled

Bolivia has been working to implement anti-money laundering measures in line with the Financial Action Task Force (FATF) 40 recommendations and eight special recommendations combating terrorism financing. While progress has been made, authorities acknowledge that key sectors remain vulnerable to money laundering.

Challenges in Implementing Anti-Money Laundering Measures

A review of Bolivia’s efforts reveals that the system for preventing and suppressing money laundering falls short in several areas:

• Currency Exchange Houses and Money Transfer Agencies: These prime targets for money launderers are not subject to the same level of regulation as other financial institutions.
• Financial Intelligence Unit (FIU): The FIU is responsible for overseeing anti-money laundering efforts, but it lacks the authority to conduct on-site inspections of financial institutions and relies heavily on sectoral superintendences to enforce compliance with anti-money laundering standards.

Strengthening Anti-Money Laundering Efforts

Despite these challenges, the FIU has taken steps to strengthen Bolivia’s anti-money laundering regime:

• Draft Law: A draft law aimed at expanding criminal classification and extending anti-money laundering obligations to new sectors, including currency exchange houses, is currently being reviewed.
• Regulation Clarifying Duties of External Auditors: The superintendence of Banks and financial institutions plans to issue a regulation clarifying the duties of external auditors.

Interinstitutional Cooperation Convention

In another significant development, Bolivia has signed an interinstitutional cooperation convention with various public entities involved in anti-money laundering efforts. The agreement aims to enhance collaboration and ultimately improve outcomes in terms of cases brought to trial, convictions, and assets seized.