Financial Crime World

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Financial Crime Reporting Procedures in Guatemala Come Under Scrutiny

A recent assessment by the Financial Action Task Force (FATF) has highlighted several areas of concern regarding Guatemala’s financial crime reporting procedures.

Assessment Reveals Deficiencies

The country’s mutual evaluation, released in 2016, revealed that while Guatemala has made some progress in implementing anti-money laundering and combating the financing of terrorism (AML/CFT) measures, there are still significant gaps to be addressed.

Partial Compliance with FATF Recommendations

According to the assessment, Guatemala was found to be partially compliant with several FATF Recommendations, including those related to:

  • Terrorist financing
  • Proliferation financing
  • Regulation and supervision of financial institutions

However, the country was deemed largely compliant in other areas, such as:

  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination
  • Confiscation and provisional measures

Deficiencies Identified

The assessment also highlighted some deficiencies, including:

  • Lack of effective customer due diligence requirements for non-profit organizations
  • Insufficient regulation and supervision of money or value transfer services
  • Non-compliance with several Recommendations related to:
    • Reporting of suspicious transactions
    • Tipping-off and confidentiality
    • Transparency and beneficial ownership of legal persons

Call to Action

The FATF has urged Guatemala to address these deficiencies in order to improve its AML/CFT regime and prevent the misuse of its financial system. The assessment is a wake-up call for the Guatemalan government, which must work to strengthen its financial crime reporting procedures and ensure that its financial institutions are better equipped to detect and prevent illicit activities.

Response to Assessment

Guatemala has committed to implementing reforms aimed at improving its AML/CFT regime, including:

  • Strengthening customer due diligence requirements
  • Enhancing regulation and supervision of financial institutions
  • Increasing international cooperation in combating financial crime

Conclusion

The outcome of this evaluation serves as a reminder of the importance of effective financial crime reporting procedures in preventing financial crimes and protecting the integrity of the global financial system.