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Fourteenth Enhanced Follow-Up Report and Fourth Technical Compliance Re-rating Report of Costa Rica
Recommendation 8 - Non-Profit Organisations (Originally rated NC and subsequently re-rated PC – Not re-rated)
Criterion 8.1
Costa Rica’s regulations related to non-profit organisations (NPOs) are based on article 25 of the Constitution, which distinguishes between two types of legal persons: associations regulated by Law 218 of August 8, 1939, and its regulation 29496 of April 17, 2001; and foundations regulated by Law 5338.
Analysis
In the area of money laundering/terrorist financing (ML/TF) prevention, Costa Rica has designated NPOs as reporting entities under Law 9449. The SUGE F, the financial supervisor, is in charge of supervising compliance with these regulations. In tax matters, Law 9416 of December 2016 creates obligations for non-profit organisations to provide information on their activities, income and expenses, donors and recipients.
Progress
Since the mutual evaluation process was conducted, Costa Rica has made progress in regulating NPOs, including:
- The elaboration of a sectoral risk assessment with respect to NPOs
- The issuance of prudential regulations aimed at ensuring that measures required from NPOs are compulsory and applied in accordance with their respective nature
- Establishing that NPOs would be subject to a supervisory body in AML/CFT matters
However, certain progress has been made with respect to this criterion. At the time supporting information was submitted, the measures set out in the report (Technical assistance for ML/TF/FPWMD risk analysis of non-profit organisations in Costa Rica) have not begun implementation as public actions aimed at better understanding the specific TF risks of NPOs.
Conclusion
Based on the information provided by the country, certain progress has been made with respect to this criterion. However, further efforts are needed to implement measures aimed at better understanding the specific TF risks of NPOs.