Financial Crime World

Costa Rica’s Regulatory Bodies Take Center Stage in Fight Against Financial Crime

A Bid to Combat Financial Crime and Terrorism Financing

San José, Costa Rica - In an effort to combat financial crime and terrorism financing, Costa Rica has taken significant steps to strengthen its regulatory bodies. The country’s efforts have earned it praise from international authorities, with many of its regulations receiving high ratings.

Guiding Principles

Costa Rica’s anti-money laundering (AML) and combating the financing of terrorism (CFT) regime is guided by the Financial Action Task Force (FATF) Recommendations. Costa Rica’s compliance with these recommendations has been assessed by the FATF, which has given the country high marks in several areas.

Key Findings

  • Assessing Risk: Costa Rica received a rating of “largely compliant” for assessing risk and applying a risk-based approach to AML/CFT measures.
  • National Cooperation and Coordination: The country also scored highly in this area, with a rating of “largely compliant”.
  • Money Laundering Offense: Costa Rica’s money laundering offense was deemed effective, receiving a high rating.
  • Confiscation and Provisional Measures: The country’s confiscation and provisional measures were also found to be effective.

Areas for Improvement

While Costa Rica has made significant progress, there are still areas that require attention:

  • Regulation of Non-Profit Organizations: The regulation and supervision of non-profit organizations was deemed “non-compliant”.
  • Transparency and Beneficial Ownership: Costa Rica’s efforts to regulate and supervise the transparency and beneficial ownership of legal persons and arrangements were also found wanting.

Progress and Cooperation

Despite these shortcomings, Costa Rica has made significant progress in strengthening its regulatory bodies:

  • Financial Intelligence Unit: The country’s financial intelligence unit has been rated as “compliant”.
  • Supervisors’ Powers: The powers of supervisors have been deemed “effective”.
  • International Cooperation: Costa Rica has taken steps to improve cooperation with international partners, including the exchange of information and mutual legal assistance.
  • Extradition Regime: The country’s extradition regime has also been praised by the FATF.

Conclusion

Costa Rica’s efforts to strengthen its regulatory bodies and combat financial crime are a step in the right direction. While there is still room for improvement, the country’s progress has earned it recognition from international authorities as a leader in the fight against financial crime.