Chile’s Efforts to Combat Financing of Terrorism Receive Mixed Review from Global Watchdog

Chile’s Progress in Combating the Financing of Terrorism (CFT) Assessed by FATF

The Financial Action Task Force (FATF) has released its Mutual Evaluation Report for Chile, evaluating the country’s progress in implementing measures to combat the financing of terrorism. While Chile has made significant strides in some areas, there are still several key issues that require improvement.

Strengths and Weaknesses

Strengths:

• Effective assessment of risk and application of a risk-based approach to CFT
• National cooperation and coordination mechanisms deemed effective, allowing for swift response to suspected cases of terrorist financing

Weaknesses:

• Laws governing confiscation and provisional measures related to CFT need improvement
• Targeted financial sanctions related to terrorism and terrorist financing require strengthening
• Treatment of non-profit organizations, particularly those suspected of engaging in terrorist activities, has been criticized
• Lack of sufficient mechanisms for monitoring and reporting suspicious transactions by these entities
• Laws governing customer due diligence and record-keeping require strengthening
• Reliance on third-party providers for CFT-related tasks deemed inadequate

Commitment to Improvement

Despite the identified weaknesses, Chile has committed to addressing them and improving its CFT regime. The country will:

• Strengthen its legal framework
• Enhance cooperation with international partners
• Increase transparency in financial transactions

Conclusion

While Chile’s efforts to combat financing of terrorism are commendable, there is still much work to be done to ensure the country is fully compliant with global standards. With a commitment to improvement and addressing the identified weaknesses, Chile can further strengthen its CFT regime and contribute to the global fight against terrorism.