Financial Inclusion and Crime in Chile: A Growing Concern
Chile, a country known for its stable economy and high standard of living, is facing a growing challenge in the realm of financial inclusion and crime. According to a recent report by the Financial Action Task Force (FATF), Chile has made significant progress in implementing the technical requirements of the FATF Recommendations, but there are still areas that require improvement.
Assessing Risk and National Cooperation
Key Challenges
One of the key areas where Chile needs to improve is in assessing risk and applying a risk-based approach. While the country has made efforts to establish a national cooperation framework, it still requires strengthening its ability to identify and mitigate risks associated with money laundering and terrorist financing.
Money Laundering Offence
Laws and Regulations
Chile has implemented laws and regulations to combat money laundering, but there is still room for improvement in terms of confiscation and provisional measures. The country needs to enhance its ability to seize assets and impose penalties on individuals and entities involved in money laundering activities.
Terrorist Financing Offence
Laws and Regulations
The report highlights the need for Chile to improve its laws and regulations related to terrorist financing offences, including targeted financial sanctions related to terrorism and terrorist financing. While the country has made progress in this area, it still requires strengthening its ability to identify and prevent terrorist financing activities.
Financial Institution Secrecy Laws
Concerns
Chile’s financial institution secrecy laws are a concern, as they may hinder the investigation and prosecution of money laundering and terrorist financing cases. The country needs to revisit its laws and regulations to ensure that they do not compromise the effectiveness of anti-money laundering efforts.
Customer Due Diligence
Measures Needed
The report emphasizes the need for Chile to improve its customer due diligence measures, including record keeping and politically exposed persons (PEPs) screening. While the country has made progress in this area, it still requires strengthening its ability to identify and mitigate risks associated with high-risk customers.
International Cooperation
Efforts and Challenges
Chile’s international cooperation efforts are a positive aspect of its anti-money laundering strategy. The country has established mutual legal assistance agreements with several countries and participates in regional organizations such as the Latin American Financial Information Regulator (LATFINREG). However, despite these efforts, Chile still faces challenges in terms of financial inclusion and crime.
Recommendations
The FATF report provides several recommendations for Chile to improve its anti-money laundering strategy, including:
- Enhance risk assessment and national cooperation framework
- Improve customer due diligence measures, including record keeping and PEPs screening
- Strengthen laws and regulations related to money laundering and terrorist financing offences
- Revise financial institution secrecy laws to ensure they do not compromise the effectiveness of anti-money laundering efforts
- Continue improving international cooperation efforts
By addressing these areas, Chile can improve its financial inclusion and crime prevention strategies, ensuring a safer and more stable economy for all its citizens.