Financial Crime World

Guatemala’s Compliance with Anti-Money Laundering Laws Under Scrutiny

A recent assessment of Guatemala’s compliance with anti-money laundering laws has revealed a mixed picture. The country received ratings ranging from compliant to partially compliant across various aspects of its anti-money laundering framework.

Strengths

  • Risk Assessment and Risk-Based Approach: Guatemala demonstrated significant strengths in assessing risk and applying a risk-based approach (R.1).
  • National Cooperation and Coordination: The country showed strength in national cooperation and coordination (R.2).
  • Confiscation and Provisional Measures: Guatemala’s confiscation and provisional measures (R.4) were deemed compliant.
  • Transparency and Beneficial Ownership of Legal Persons: The country’s transparency and beneficial ownership of legal persons (R.24) received a positive rating.
  • Financial Institution Secrecy Laws and Internal Controls and Foreign Branches and Subsidiaries: Guatemala’s financial institution secrecy laws (R.9) and internal controls and foreign branches and subsidiaries (R.18) were largely compliant.

Areas for Improvement

  • Terrorist Financing Offence: Guatemala was found to be partially compliant with regard to terrorist financing offence (R.5).
  • Targeted Financial Sanctions related to Terrorism and Terrorist Financing: The country received a partial compliance rating for targeted financial sanctions related to terrorism and terrorist financing (R.6).
  • Targeted Financial Sanctions related to Proliferation: Guatemala was partially compliant with targeted financial sanctions related to proliferation (R.7).
  • Reliance on Third Parties: The country’s reliance on third parties (R.17) was identified as an area for improvement.
  • DNFBPs: Other Measures: Guatemala’s DNFBPs: other measures (R.23) also require attention.

Non-Compliant Areas

  • Regulation and Supervision of DNFBPs: Guatemala received a non-compliant rating in the regulation and supervision of DNFBPs (R.28).
  • Financial Intelligence Units: The country was non-compliant with financial intelligence units (R.29).
  • International Instruments: Guatemala’s compliance with international instruments (R.36) was deemed non-compliant.
  • Powers of Supervisors: The country’s powers of supervisors (R.27) were also non-compliant.
  • Law Enforcement and Investigative Authorities: Guatemala’s law enforcement and investigative authorities (R.30) received a non-compliant rating.

Recommendations

To strengthen its anti-money laundering regime, Guatemala is urged to:

  • Improve the regulation and supervision of financial institutions
  • Enhance customer due diligence
  • Strengthen record keeping and reporting of suspicious transactions
  • Increase transparency and beneficial ownership of legal arrangements (R.25)

By addressing these shortcomings, Guatemala can prevent the misuse of its financial system for illicit activities and strengthen its anti-money laundering regime.