Honduras Falls Short on Anti-Money Laundering Regulations, says Global Watchdog

Tegucigalpa - A Recent Report by the Financial Action Task Force (FATF)

Honduras has failed to implement key measures to combat money laundering and terrorist financing, according to a recent report by the Financial Action Task Force (FATF). The country received a rating of “largely compliant” for its implementation of FATF recommendations, but several areas require improvement.

Key Findings

Honduras was found to be non-compliant in nine out of 40 areas assessed.
Regulation and supervision of DNFBPs (designated non-financial businesses and professions) need improvement.
Measures for transparency and beneficial ownership of legal persons and arrangements are inadequate.

Areas of Strength

Implementation of certain technical requirements, including laws related to money laundering offenses and confiscation of proceeds.
Well-equipped financial intelligence unit and law enforcement agencies.

Areas for Improvement

Customer due diligence procedures at financial institutions need improvement.
Internal controls at financial institutions require strengthening.
Measures for reporting suspicious transactions are inadequate.
Relying on third parties is not sufficient.

Recommendations for Improvement

The FATF report provides recommendations for improvement, which Honduran authorities must implement in order to comply with international standards. The country has one year to address these deficiencies before its next review by the FATF.

Consequences of Non-Compliance

Failure to do so could result in Honduras being added to a list of jurisdictions deemed non-cooperative in the fight against money laundering and terrorist financing.

This report is a follow-up to the organization’s initial assessment of Honduras’ anti-money laundering regulations in 2023. It highlights the importance of implementing effective measures to combat money laundering and terrorist financing, and emphasizes the need for continuous improvement and oversight.