Bolivia Steps Up Efforts Against Money Laundering, But Shortfalls Remain

Bolivia has made significant progress in implementing international standards for combating money laundering, but authorities acknowledge that there is still work to be done to strengthen the country’s financial system against these illicit activities.

Progress Made

According to a report, Bolivia has largely complied with the Financial Action Task Force’s (FATF) 40 Recommendations for Anti-Money Laundering and eight Special Recommendations Combating the Financing of Terrorism. The country’s anti-money laundering regime applies to the insurance, stock market, and financial sectors.

Gaps in Coverage

However, there are still gaps in Bolivia’s coverage, particularly in the areas of:

• Currency Exchange Houses: These activities are considered high-risk for money laundering, and authorities hope to rectify this shortcoming in the medium term.
• Financial Sectors: The anti-money laundering regime does not fully cover all financial sectors.

Role of the Financial Intelligence Unit (FIU)

The FIU plays a central role in Bolivia’s anti-money laundering efforts, responsible for:

• Institutional regulatory and supervisory duties
• Financial intelligence duties

However, the FIU lacks the authority and resources to conduct on-site supervision of the financial system or push for legislative reforms to strengthen its powers.

Measures Initiated by the FIU

To address these weaknesses, the FIU has initiated several measures, including:

• Drafting a law to expand the criminal classification of money laundering offenses
• Extending the obligation to prevent such activities to new sectors, including currency exchange houses
• Requiring financial institutions’ external auditors to be more exacting in their duties

Interinstitutional Cooperation Convention

Bolivia has recently signed an interinstitutional cooperation convention with various public entities involved in anti-money laundering efforts. This agreement aims to:

• Enhance coordination
• Achieve better results in terms of cases brought to trial, convictions, and goods confiscated

Remaining Shortfalls

While Bolivia’s efforts are commendable, it is clear that more work needs to be done to ensure the country’s financial system is adequately protected against money laundering. Authorities must continue to prioritize this issue and address the remaining shortfalls to maintain a robust anti-money laundering regime.

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