Financial Crime Prevention Strategies in Costa Rica Take Center Stage

The 2019 World Compliance Forum: A Call to Action Against Financial Crimes

The 2019 World Compliance Forum brought together over 300 compliance professionals from Latin America to address the growing threat of financial crimes, including money laundering, corruption, and cyberattacks. The event, themed “The Era of Digital Compliance,” emphasized the need for specialized training and cooperation between public and private sectors to combat these crimes.

Supervising New Obliged Subjects: A Challenge for Costa Rica

According to Román Chavarría, head of the Financial Intelligence Unit at Costa Rica’s Institute on Drugs (ICD), one of the country’s main challenges is supervising new subjects obliged to report suspicious activities and comply with international standards to prevent money laundering and terrorist financing. The law now requires lawyers, accountants, real estate agents, moneylenders, sellers of metals and precious stones (jewelry) and pawnshops to report any suspicious transactions.

Global Scope of Illicit Trade: A $520 Billion Annual Problem

The forum also featured a presentation on the global scope of illicit trade, which is estimated to generate $520 billion annually. Illicit activities such as smuggling, counterfeiting, tax fraud, and customs fraud account for 80% of criminal finance, with 60% of money laundering organizations using corruption to facilitate their illegal activities.

Asset Forfeiture and Public-Private Cooperation: Key to Dismantling Criminal Organizations

Experts at the forum emphasized the importance of asset forfeiture and public-private cooperation in dismantling criminal organizations. The Financial Intelligence Unit reported 718 suspicious activities in 2022, representing over $222 billion in potential losses. Of these cases, the ICD sent 290 reports to the Public Ministry for further investigation.

Challenges Facing Latin America: A Region Prone to Violence and Digital Illicit Activities

The conference highlighted the challenges facing Latin America, including the region’s high levels of violence and the acceleration of digital illicit activities during the COVID-19 pandemic. Experts called for international cooperation and education to build resilience and strengthen state presence in communities vulnerable to organized crime.

Biden Administration’s Policy: A Commitment to Combating Corruption and Transnational Organized Crime

The event concluded with a presentation on the Biden Administration’s policy to combat corruption and transnational organized crime in Latin America. The policy includes modernizing government efforts, stopping illicit finances, holding corrupt actors accountable, strengthening multilateral architecture against corruption, and enhancing diplomatic engagement.

Conclusion

The 2019 World Compliance Forum emphasized the importance of cooperation between public and private sectors to prevent financial crimes and dismantle criminal organizations. As the global landscape continues to evolve, it is crucial that countries like Costa Rica prioritize these efforts to build a safer and more resilient future for all.