Financial Crime World

Title: “Guatemala’s Battle Against Financial Crimes: Persisting Challenges and Ways Forward”

Guatemala’s Risk Landscape

  • Described as having a ‘sprawling, diverse, and complex’ Anti-Money Laundering (AML) system
  • Challenges: unequal implementation, outdated regulations, political interference, extortion, corruption, and economic inequality
  • Estimated extortion revenues: around $400 million annually
  • Political interference: expulsion of International Commission against Impunity in Guatemala (CICIG) in 2019

Guatemala’s Financial Crime Landscape: Key Challenges and Laws

  • Guatemala, known for rampant corruption, weak institutions, and outdated legislation
  • Moderately strong investigation and prosecution systems
  • Challenges: weak prevention and detection capabilities

Regulatory Gaps

  • Designation of lawyers and notaries as obligated entities in 2020
  • Inadequate legal framework
  • Missing: beneficial ownership legislation, fintech law, regulations for some financial institutions

Vulnerable Economic Sectors and Money Laundering Methods

Vulnerable Economic Sectors

  • Credit unions
  • Vehicle sales
  • Real estate
  • NGOs
  • Armored car services

Money Laundering Methods

  • Banks
  • Political campaigns
  • Shell companies
  • Construction and infrastructure projects
  • Misinvoicing
  • Supermarkets
  • Gas stations
  • Churches

Criminal Proceeds and Money Laundering in Guatemala

  • $1.1 billion to $2.7 billion laundered each year

President Morales’ Interference and Lack of Support

  • Absence of political commitment to prevent financial crime
  • Roll back of efforts to enhance transparency and anti-corruption measures
  • Questionable judiciary
  • U.S. foreign aid impact: significiant but diminished during the Trump administration

A Roadmap for Navigating Guatemala’s Financial Crime Landscape

  • Comprehensive, free guide for businesses
  • Understanding prevalent issues in Latin America and the Caribbean
  • Country-by-country assessment of AML risks and laws

Download our free guide to learn more about the AML risks and challenges in Latin America and the Caribbean.