Bolivia Prepares for Fourth Round of Mutual Evaluation by GAFILAT

Financial Institutions Take Steps to Ensure Compliance with Regulatory Requirements

BOGOTA - Bolivia is set to undergo its fourth round of Mutual Evaluation by the Financial Action Task Force of Latin America (GAFILAT) after nine years. In preparation, financial institutions are taking steps to ensure compliance with regulatory requirements. A recent conference organized by the Association of Private Banks of Bolivia (ASOBAN) brought together industry executives to learn about the evaluation process and their roles in preparing for it.

The Importance of Mutual Evaluations

Alejandra Quevedo, an international expert on financial integrity and consultant to the World Bank and other organizations, led the discussion on the importance of mutual evaluations. According to Quevedo, these evaluations are carried out among peer countries, with experts from GAFILAT member nations assessing a country’s progress in implementing the 40 GAFI Recommendations aimed at combating money laundering (ML), financing of terrorism (FT), and proliferation financing (PF).

The Evaluation Process

The evaluation process focuses on technical compliance, examining whether a country’s legal system is adequate to international standards established by GAFI. The assessment also evaluates the institutional apparatus required for the implementation of these measures. Quevedo emphasized that mutual evaluations are critical in verifying a country’s progress in implementing anti-money laundering and combating the financing of terrorism (AML/CFT) measures, highlighting the importance of effective risk-based approaches to identifying potential ML and FT risks.

Preparing for the Evaluation

The conference aimed to equip senior management with the knowledge necessary to navigate the evaluation process effectively. As Bolivia prepares for its fourth round of Mutual Evaluation, financial institutions are taking a closer look at their compliance procedures to ensure they meet international standards. The country’s financial regulators will be scrutinizing its systems and processes to determine whether it is adequately addressing ML, FT, and PF risks.

Increased Scrutiny

With GAFILAT’s evaluation process expected to shed light on Bolivia’s progress in implementing anti-money laundering measures, the country’s financial sector is under increased scrutiny. As the deadline approaches, industry players are working to strengthen their compliance procedures, ensuring they meet international standards and minimizing the risk of ML, FT, and PF activities.

Key Takeaways:

• Mutual evaluations are critical in verifying a country’s progress in implementing anti-money laundering and combating the financing of terrorism measures.
• The evaluation process focuses on technical compliance, examining whether a country’s legal system is adequate to international standards established by GAFI.
• Financial institutions must take steps to ensure they meet international standards and minimize the risk of ML, FT, and PF activities.