Financial Crime World

CHILE RECEIVES MIXED REVIEW FROM FINANCIAL ACTION TASK FORCE (FATF) ON IMPLEMENTATION OF MONEY LAUNDERING AND TERRORIST FINANCING RECOMMENDATIONS

The Financial Action Task Force (FATF), a global body that sets standards for combating money laundering and terrorist financing, has issued its latest review of Chile’s implementation of its recommendations. The report gives Chile a mixed rating, with some areas showing significant progress while others require further improvement.

Key Findings

  • Chile was found to be “largely compliant” in several key areas, including:
    • Assessing risk and applying a risk-based approach (R.1)
    • National cooperation and coordination (R.2)
    • Targeted financial sanctions related to terrorism and terrorist financing (R.6)
    • Regulation and supervision of financial institutions (R.26) and powers of supervisors (R.27)
  • Chile was found to be “partially compliant” in several areas, including:
    • Confiscation and provisional measures (R.4)
    • Terrorist financing offence (R.5)
    • Targeted financial sanctions related to proliferation (R.7)
    • Treatment of non-profit organisations (R.8) and transparency and beneficial ownership of legal persons and arrangements (R.24)
  • Chile was found to be “non-compliant” in one area:
    • Treatment of non-profit organisations (R.8) and transparency and beneficial ownership of legal persons and arrangements (R.24)

Financial Institutions

  • Chile was found to be “partially compliant” in several areas related to financial institutions, including:
    • Customer due diligence (R.10)
    • Record keeping (R.11)
    • Correspondent banking (R.13)
  • Chile also received a rating of “partially compliant” for its treatment of DNFBPs, including customer due diligence (R.22) and other measures (R.23)

Conclusion

The report notes that Chile has made significant progress in recent years in implementing the FATF recommendations, but there is still much work to be done. The country’s financial authorities will need to continue to improve their efforts to combat money laundering and terrorist financing.

Overall, the FATF review provides a mixed assessment of Chile’s implementation of its money laundering and terrorist financing recommendations. While some areas show significant progress, others require further improvement to ensure that the country is effectively combating these threats.