Bolivia’s Financial Compliance Regulations Under Scrutiny
The Financial Action Task Force (FATF) has released its latest report assessing Bolivia’s compliance with anti-money laundering and combating the financing of terrorism recommendations. The report highlights both significant progress and areas that require improvement.
Assessment Results
Bolivia received a rating of “largely compliant” for 13 out of 40 recommendations, indicating that it has implemented most of the required measures. However, there were seven recommendations where Bolivia was rated as “partially compliant”, and four where it was found to be “non-compliant”.
Key Areas of Improvement
The report highlights several areas where Bolivia needs to improve its financial compliance regulations, including:
- National cooperation and coordination
- Money laundering and terrorist financing offences
- Confiscation and provisional measures
- Regulation and supervision of financial institutions
In particular, Bolivia’s laws regarding non-profit organizations were found to be inadequate, with a rating of “non-compliant”. Additionally, the country’s financial institution secrecy laws were deemed compliant, but this was seen as a potential vulnerability in the fight against money laundering and terrorist financing.
Progress Made
Despite the areas that require improvement, the report notes several positive developments. Bolivia has made significant progress in:
- Implementing its risk-based approach to assessing risks and applying targeted measures
- Strengthening national cooperation and coordination mechanisms
- Improving regulation and supervision of financial institutions
The country’s efforts to combat terrorist financing were also praised, with a rating of “largely compliant” for several recommendations related to this issue.
Recommendations for Improvement
To address the remaining deficiencies, Bolivia is recommended to:
- Strengthen laws and regulations in key areas, including non-profit organizations and financial institution secrecy
- Continue improving national cooperation and coordination mechanisms
- Enhance regulation and supervision of financial institutions
The FATF will continue to monitor Bolivia’s progress and provide technical assistance where necessary to help the country implement the remaining recommendations.