Costa Rica Reduces Risk of Terrorist Financing Regulations

Costa Rica Achieves Lowest Risk Level Since 2015

According to the latest Basel AML Index, Costa Rica has made significant strides in reducing its risk of money laundering and terrorist financing. The country scored a 4.58 out of a possible 10 points in 2022, representing the lowest risk level for Costa Rica since at least 2015.

Key Findings

• Costa Rica’s improvement positions it among the countries with the lowest risk index of money laundering and terrorist financing in Latin America.
• The Basel AML Index is a composite measure that takes into account 16 different indicators related to corruption, financial standards, political disclosure, and rule of law.

Methodology Behind the Index

The data used to compile the index is sourced from publicly available information, including:

• Financial Action Task Force (FATF): An inter-governmental organization that develops policies to protect the global financial system against money laundering and terrorist financing.
• Transparency International: A non-governmental organization that works to combat corruption globally.
• World Bank: An international financial institution that provides loans, advice, and other services to developing countries.
• World Economic Forum: An independent international organization committed to improving the state of the world by engaging business, political, academic, and other leaders.

Implications for Costa Rica

Costa Rica’s improvement in this area reflects the country’s efforts to strengthen its financial regulations and combat illicit activities. However, it is essential to continue monitoring the situation and implementing measures to prevent money laundering and terrorist financing. The country’s progress is a positive development, but vigilance remains crucial to maintaining a secure and transparent financial system.