Costa Rica Tightens Anti-Money Laundering Regulations Amid Financial Sector Concerns

Strengthening Costa Rica’s Anti-Money Laundering Framework

In a bid to curb money laundering and terrorist financing, Costa Rica’s Superintendence of Financial Institutions (SUGEF) has issued a list of regulations that financial entities supervised by the agency must comply with. These regulations aim to strengthen the country’s anti-money laundering framework and prevent financial transactions from being used for illegal purposes.

Key Provisions

The SUGEF has outlined 28 specific provisions that apply to private banks, non-bank financial companies, savings and credit cooperatives, and mutual savings and loans. Some of the key provisions include:

• Group Registration: Financial entities must register their group structure and maintain accurate records.
• Customer Due Diligence: Financial entities must verify customers’ identities and monitor their transactions to prevent money laundering and terrorist financing.
• Internal Policies and Procedures: Financial entities must establish internal policies and procedures to prevent money laundering and terrorist financing, as well as train employees on anti-money laundering compliance.

Stricter Requirements

The new regulations introduce stricter requirements for customer due diligence, including:

• Verification of Customer Identities: Financial entities must verify customers’ identities to prevent illegal activities.
• Monitoring of Transactions: Financial entities must monitor transactions to detect and report suspicious activity.
• Reporting of Suspicious Transactions: Financial entities are required to report suspicious transactions to the SUGEF.

Benefits for the Financial Sector

The new regulations have been welcomed by financial sector stakeholders, who see them as a necessary step to strengthen Costa Rica’s anti-money laundering framework and maintain the country’s reputation as a stable and secure financial hub. The benefits of these regulations include:

• Increased Transparency: Financial entities must maintain accurate records and provide detailed information on customers, transactions, and activities.
• Accountability: Financial entities are required to establish internal policies and procedures to prevent money laundering and terrorist financing.
• Trust in the System: By complying with the SUGEF’s anti-money laundering regulations, financial entities can help prevent illegal activities, maintain a clean reputation, and attract foreign investment and talent.

Ongoing Support and Guidance

The SUGEF has committed to providing ongoing support and guidance to financial entities as they implement the new regulations. The agency will also conduct regular inspections and audits to ensure compliance with the regulations and detect any potential money laundering or terrorist financing activities.

By implementing these new regulations, Costa Rica’s financial sector is expected to benefit from increased transparency, accountability, and trust in the system, ultimately maintaining its reputation as a stable and secure financial hub.