Financial Crime World

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Financial Crime Definition in Costa Rica: A Comprehensive Review

Costa Rica has implemented significant measures to combat financial crime, according to a recent report. The country’s financial system is subject to strict regulations and supervision, aimed at preventing money laundering and terrorist financing.

Progress Made

The report highlights several key areas where Costa Rica has made notable progress:

  • Assessing Risk: Costa Rica has demonstrated a high level of compliance in assessing risk and applying a risk-based approach, earning a rating of (C).
  • National Cooperation and Coordination: National cooperation and coordination are deemed strong, with a rating of compliant (C).
  • Laws and Regulations: Costa Rica’s laws criminalize money laundering and terrorist financing, earning it a compliant (C) rating in this area.
  • Asset Confiscation: The confiscation of assets related to financial crimes is also effectively implemented, with a largely compliant (LC) rating.

Additionally, Costa Rica has made significant strides in:

  • Targeted Financial Sanctions: Targeted financial sanctions related to terrorism and proliferation are well-regulated, earning a rating of compliant (C).
  • Regulation and Supervision of Financial Institutions: The regulation and supervision of financial institutions is also deemed effective, with a largely compliant (LC) rating.

Areas for Improvement

However, there are some areas where Costa Rica falls short:

  • Financial Institution Secrecy: Costa Rica’s laws regarding financial institution secrecy could be improved, earning a partially compliant (PC) rating in this area.
  • Customer Due Diligence Procedures: While largely compliant (LC), customer due diligence procedures could benefit from further strengthening.

The report also highlights several areas for improvement:

  • Regulation and Supervision of DNFBPs: The regulation and supervision of Designated Non-Financial Businesses and Professions (DNFBPs) is an area that requires attention.
  • Transparency and Beneficial Ownership: Transparency and beneficial ownership of legal persons and arrangements are also important areas for improvement.
  • Powers of Supervisors and Law Enforcement Authorities: The powers of supervisors and law enforcement authorities should be reviewed to ensure they are effective in combating financial crime.

Conclusion

Overall, Costa Rica has made significant progress in implementing measures to combat financial crime. However, there are still areas where the country can improve its compliance with international standards and best practices.