Financial Crime World

Bolivia’s Financial Institutions Under Scrutiny for Anti-Money Laundering Efforts

The latest report from global financial watchdogs has given Bolivia a mixed review for its efforts to combat money laundering and terrorist financing. While the country’s financial institutions have made significant progress in some areas, there are still several key areas that require improvement.

Compliance Highlights

  • Assessing Risk and Applying a Risk-Based Approach (R.1): Bolivia is largely compliant with regards to assessing risk and applying a risk-based approach.
  • National Cooperation and Coordination (R.2): The country has also made significant strides in implementing targeted financial sanctions related to terrorism and terrorist financing (R.6) and proliferation (R.7).
  • Record Keeping (R.11) and Internal Controls and Foreign Branches and Subsidiaries (R.18): Bolivia’s record keeping and internal controls are largely compliant.

Areas for Improvement

  • Confiscation and Provisional Measures (R.4) and Customer Due Diligence (R.10): These areas are only partially compliant.
  • Beneficial Ownership of Legal Persons (R.24) and Legal Arrangements (R.25): Bolivia has been criticized for its lack of transparency in regards to the beneficial ownership of legal persons and legal arrangements.
  • Regulation and Supervision of Financial Institutions (R.26) and DNFBPs (R.28): These areas are only partially compliant.

International Cooperation

  • Mutual Legal Assistance (R.37), Extradition (R.39), and Other Forms of International Cooperation (R.40): Bolivia’s cooperation with international partners is largely compliant.
  • Statistics (R.33) and Guidance and Feedback (R.34): There is room for improvement in regards to providing statistics and guidance.

Conclusion

While Bolivia’s financial institutions have made significant progress in implementing anti-money laundering measures, there is still much work to be done to bring them fully into compliance with global standards. The country will need to continue to prioritize these efforts if it hopes to maintain its position as a major player in the global financial system.