Financial Crime World

Guatemala Steps Up Efforts to Combat Financial Terrorism

In a bid to curb the growing threat of financial terrorism, Guatemala has taken significant strides to implement international standards and best practices to combat money laundering and terrorist financing. The country’s efforts were recently assessed by the Financial Action Task Force (FATF), which issued a comprehensive report evaluating Guatemala’s compliance with its recommendations.

Progress Made

According to the report, Guatemala scored high marks in several areas, including:

  • Assessing Risk and Applying a Risk-Based Approach (R.1): Guatemala demonstrated a strong understanding of risk assessment and implemented measures to mitigate money laundering and terrorist financing risks.
  • National Cooperation and Coordination (R.2): The country strengthened its cooperation with law enforcement agencies and other stakeholders, enabling more effective information sharing and coordination.
  • Confiscation and Provisional Measures (R.4): Guatemala improved its ability to freeze and seize assets related to criminal activities, demonstrating a commitment to asset recovery.
  • Targeting Terrorist Financing (R.5) and Correspondent Banking (R.13): The country made significant progress in implementing measures to target terrorist financing and strengthen correspondent banking relationships.

Areas for Improvement

Despite the progress made, Guatemala was found to be partially compliant with several other recommendations, including:

  • Targeted Financial Sanctions related to Terrorism and Terrorist Financing (R.6): Guatemala needs to improve its implementation of targeted financial sanctions related to terrorism and terrorist financing.
  • Customer Due Diligence (R.10) and Reporting of Suspicious Transactions (R.20): The country requires strengthening customer due diligence processes and reporting suspicious transactions in a more effective manner.

Commitment to Combating Financial Terrorism

The FATF report highlighted Guatemala’s commitment to combating financial terrorism and money laundering, acknowledging the country’s significant strides in recent years:

  • Strengthening its legal framework
  • Improving cooperation with international partners
  • Enhancing transparency and beneficial ownership of legal persons

Steps Forward

Guatemala is taking steps to address the remaining gaps identified by the FATF report, including:

  • Strengthening its Financial Intelligence Unit: Guatemala will enhance its financial intelligence unit’s capabilities to share information with foreign authorities.
  • Improving Regulatory Oversight: The country will strengthen regulatory oversight of financial institutions and designated non-financial businesses and professions (DNFBPs).

Conclusion

Guatemala’s efforts aim to protect its financial system from abuse by criminal organizations and terrorist networks, while maintaining the country’s reputation as a responsible and cooperative international partner.