Financial Crime World

Chile’s Fight Against Money Laundering: A Look at Detection Methods

Introduction

In a bid to curb money laundering, Chile has implemented several measures as recommended by the Financial Action Task Force (FATF). The country’s Mutual Evaluation 2021 revealed a mixed bag of ratings, with some areas showing significant improvement.

Risk Assessment and Risk-Based Approach

  • Assessing Risk: Chile scored largely compliant (LC) in this area, indicating that it has made significant strides in identifying high-risk transactions and implementing measures to mitigate them.
  • National Cooperation and Coordination: The country received a compliance rating (C), highlighting the importance of coordination among various government agencies and institutions in combating money laundering.
  • Money Laundering Offence: Chile was found to be largely compliant (LC) in this regard, with its legal framework providing for effective prosecution and punishment of money laundering crimes.
  • Confiscation and Provisional Measures: The country scored largely compliant (LC), demonstrating its ability to confiscate proceeds of crime and impose provisional measures to prevent further laundering.

Terrorism Financing

  • Terrorist Financing Offence: Chile received a partial compliance rating (PC) due to some gaps in its legal framework, but has made progress in identifying and prosecuting terrorist financing cases.
  • Targeted Financial Sanctions Related to Terrorism and Terrorist Financing: The country scored partially compliant (PC), with some areas requiring improvement in the implementation of targeted sanctions against individuals and entities linked to terrorism.

Conclusion

While there is still room for improvement, the report suggests that Chile has made significant progress in implementing FATF recommendations. To view the full report, please click here.