Costa Rica Fails to Meet International Standards on Terrorist Financing Regulations

Introduction

A new report from the Financial Action Task Force (FATF) has found that Costa Rica is not fully complying with international standards for preventing and combating terrorist financing. The report assesses Costa Rica’s implementation of 40 technical requirements related to anti-money laundering and counter-terrorism financing.

Key Findings

• National cooperation and coordination: non-compliant
• Money laundering offense: non-compliant
• Confiscation and provisional measures: largely compliant
• Customer due diligence: non-compliant
• Targeted financial sanctions related to terrorism and terrorist financing: largely compliant

Recommendations

• Strengthen laws and regulations for combating terrorist financing
• Improve national cooperation and coordination
• Enhance customer due diligence
• Increase transparency and beneficial ownership of legal persons and arrangements
• Implement effective measures to prevent and detect suspicious transactions

Conclusion

The FATF report serves as a warning to Costa Rica that it needs to take immediate action to address its weaknesses in combating terrorist financing. Failure to do so may result in international sanctions and reputational damage.