Financial Crime World

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Honduras Makes Progress in Combating Terrorist Financing, but Falls Short on Some Fronts

A recent assessment by the Financial Action Task Force (FATF) has found that Honduras has made significant strides in implementing measures to combat terrorist financing. However, the country still lags behind in certain areas.

Progress and Challenges

According to the FATF’s 2016 Mutual Evaluation, Honduras has implemented many of the technical requirements set out by the organization. The country has demonstrated a commitment to assessing risk and applying a risk-based approach to combating money laundering and terrorist financing [R.1].

  • National cooperation and coordination have also shown progress [R.2], with law enforcement agencies working closely together to tackle financial crimes.
  • Honduras has made efforts to criminalize money laundering and terrorist financing offenses [R.3 and R.5], and has established a framework for confiscating and freezing assets linked to these crimes [R.4].
  • The country has implemented targeted financial sanctions related to terrorism and terrorist financing [R.6].

Remaining Challenges

However, Honduras still faces challenges in certain areas.

  • The country’s financial institution secrecy laws remain inadequate [R.9], and there is a lack of transparency around beneficial ownership of legal persons and arrangements [R.24 and R.25].
  • Honduras has struggled to regulate and supervise financial institutions effectively [R.26], with some institutions failing to maintain adequate internal controls.

International Cooperation

Despite these challenges, the FATF has praised Honduras for its efforts to implement measures aimed at combating terrorist financing. The country has demonstrated a commitment to international cooperation, having signed several agreements aimed at sharing information and coordinating efforts with other countries [R.37-40].

Conclusion

While there is still much work to be done, the FATF’s assessment recognizes Honduras’ progress in implementing measures to combat terrorist financing. The country must continue to build on this momentum and address remaining gaps in its regulatory framework.

Note: R.[number] refers to specific recommendations made by the Financial Action Task Force (FATF).