Financial Crime World

Costa Rica Steps Up Financial Crime Prevention Strategies

In its latest report, Costa Rica has demonstrated significant progress in implementing measures to prevent financial crimes, including money laundering and terrorist financing.

Progress Report

The report assesses Costa Rica’s compliance with the Financial Action Task Force (FATF) Recommendations and reveals that the country has made substantial strides in strengthening its financial crime prevention framework. Specifically:

  • Costa Rica is largely compliant with FATF Recommendation R.1, Assessing Risk and Applying a Risk-Based Approach, demonstrating its ability to identify and mitigate high-risk areas.
  • The country has shown significant progress in implementing measures to prevent terrorist financing, including targeted financial sanctions related to terrorism (R.6) and proliferation (R.7).

Areas for Improvement

While Costa Rica has made notable progress, there are several areas that require further attention:

  • Regulations and Supervision of Non-Profit Organizations: Strengthen regulations and supervision of non-profit organizations to prevent financial crimes.
  • Correspondent Banking and Money or Value Transfer Services: Enhance correspondent banking and money or value transfer services to reduce the risk of financial crime.
  • Laws on Financial Institution Secrecy and Customer Due Diligence: Review and strengthen laws on financial institution secrecy and customer due diligence to ensure effective prevention of financial crimes.

Recommendations for Improvement

To further improve its financial crime prevention framework, Costa Rica is recommended to:

  • Improve transparency and beneficial ownership of legal persons and arrangements
  • Increase cooperation and coordination between government agencies, financial institutions, and international partners

Conclusion

Costa Rica’s progress in implementing measures to prevent financial crimes is a significant step forward for the country. While there are areas that require improvement, the country’s commitment to combating money laundering and terrorist financing is evident. With continued cooperation and coordination, Costa Rica can continue to strengthen its financial crime prevention framework and effectively combat these threats.