Costa Rica Struggles to Eradicate Money Laundering Schemes as Progress Remains Spotty

Despite significant strides in addressing technical compliance issues, Costa Rica continues to face challenges in implementing anti-money laundering requirements. A recent report by a leading international organization has re-rated the country’s progress on several key recommendations, highlighting ongoing issues.

Progress and Challenges

According to the report, Costa Rica has made notable improvements in tackling money laundering schemes. However, lingering issues persist. The report highlights that:

• Recommendation 17, previously rated as “partially compliant”, has been upgraded to “compliant”.
• Recommendations 22 and 28, initially rated as “partially compliant” and “non-compliant”, respectively, have both improved to “largely compliant”.

Ongoing Efforts and Scrutiny

The report concludes the enhanced follow-up of Costa Rica’s anti-money laundering efforts for the Fourth Round of Mutual Evaluations. However, it also emphasizes that ongoing progress and advances made by the country will be closely scrutinized in preparation for the Fifth Round of Mutual Evaluations.

Experts’ Warning

Experts warn that the persistence of minor deficiencies could undermine efforts to combat money laundering schemes in Costa Rica, potentially allowing criminal networks to exploit weaknesses and continue their illegal activities undeterred. As a result, it is crucial that:

• The country continues to prioritize anti-money laundering measures.
• Addressing these lingering issues ensures the integrity of its financial system.

Conclusion

In conclusion, while Costa Rica has made significant progress in addressing money laundering schemes, ongoing challenges and minor deficiencies persist. It is essential for the country to continue prioritizing anti-money laundering efforts and address these lingering issues to ensure a robust and secure financial system.