Financial Crime World

Chile’s Fight Against Financial Crimes: A Review of Compliance with FATF Recommendations

======================================================

A recent evaluation by the Financial Action Task Force (FATF) has shed light on Chile’s efforts to combat financial crimes, including money laundering and terrorist financing. The report assesses Chile’s compliance with a range of recommendations aimed at preventing and detecting these illicit activities.

Progress Made

Chile has made significant progress in implementing the technical requirements of FATF Recommendations. The country scored highly in several areas, including:

  • National cooperation and coordination (R.2)
  • Confiscation and provisional measures (R.4)
  • Customer due diligence (R.10)
  • Record keeping (R.11)
  • Reporting of suspicious transactions (R.20)

Praise for Regulatory Efforts

Chile received praise for its efforts to regulate and supervise financial institutions (R.26), as well as its powers of supervisors (R.27). The country’s financial intelligence units were found to be effective in collecting and analyzing data related to financial crimes.

Areas for Improvement

However, the report also identified areas where Chile needs to improve, including:

  • Targeted financial sanctions related to terrorism and terrorist financing (R.6)
  • Proliferation-related recommendations (R.7)

Additionally, Chile’s laws and regulations governing non-profit organizations (R.8) were found to be lacking in certain areas, while its financial institution secrecy laws (R.9) were deemed insufficient.

Non-Compliance with Recommendations

The report also highlights several recommendations where Chile was found to be non-compliant, including:

  • Wire transfers (R.16)
  • Reliance on third parties (R.17)
  • Tipping-off and confidentiality (R.21)

Conclusion

Overall, the evaluation underscores Chile’s commitment to combating financial crimes, but also emphasizes the need for continued improvement in certain areas. By addressing these weaknesses, Chile can strengthen its efforts to prevent and detect money laundering and terrorist financing, while also enhancing its reputation as a responsible international player.

Next Steps

Chile has been placed on the FATF’s list of jurisdictions with strategic deficiencies, which means that it will be subject to increased monitoring and supervision by the organization. The country is expected to take immediate action to address these weaknesses and implement the necessary reforms to bring itself into compliance with FATF Recommendations.

By addressing these areas for improvement, Chile can demonstrate its commitment to combating financial crimes and enhance its reputation as a responsible international player.