Bolivia Struggles to Implement Effective Anti-Money Laundering Laws, Experts Warn

Despite making progress in complying with international standards for combating money laundering and terrorist financing, Bolivia’s anti-money laundering system remains flawed and lacks effective oversight, according to a recent report.

Key Challenges

• Failure to implement measures to prevent money laundering in certain sectors, such as currency exchange houses and money transfer agencies
• Lack of authority for the Financial Intelligence Unit (FIU) to conduct on-site inspections or enforce compliance with anti-money laundering standards among financial institutions
• Limited resources and inability to push for legislative reforms and improve program effectiveness

Efforts to Address Deficiencies

• The FIU has drafted a law to expand the criminal classification of money laundering and extend the obligation to prevent money laundering to new sectors
• The Superintendence of Banks and financial institutions will issue regulations making external auditors’ duties more stringent
• Implementation of an interinstitutional cooperation convention signed by public entities involved in anti-money laundering efforts, aiming to improve results in cases brought to trial, convictions, and goods confiscated

Consequences of Failure

Experts warn that Bolivia’s failure to address these issues could have serious consequences for the country’s financial stability and reputation.

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