Only minor deficiencies remain in Costa Rica’s AML measures, says FATF

Wednesday, 21 February 2024
A reassessment of Costa Rica's anti-money laundering (AML) legislation by the Financial Action Task Force (FATF) has re-rated the jurisdiction from non-compliant or partially compliant to compliant or largely compliant on three FATF recommendations.

FATF says Costa Rica has made “significant progress” in addressing the issues identified in its most recent mutual evaluation. Recommendation 17, regarding reliance on third parties, has been upgraded from partially compliant to compliant. Recommendation 22, on due diligence for designated non-financial businesses and professions (DNFBPs), has been upgraded from partially compliant to largely compliant. Finally, FATF has upgraded Costa Rica from non-compliant to largely compliant on Recommendation 28, which deals with the regulation and supervision of DNFBPs.

Accordingly, the organisation has concluded its enhanced follow-up process on the country for the fourth round of mutual evaluations. “The significant efforts and progress made by the country to address the shortcomings identified in the Mutual Evaluation Report are recognised and reflected in the approved follow-up reports,” the FATF report says.

Costa Rica remains non-compliant on Recommendation 15 relating to virtual assets, along with many other jurisdictions. It is partially compliant on Recommendations 8, on protecting non-profit organisations from abuse for terrorist financing and Recommendation 35, on sanctions. Any subsequent progress in technical compliance with these recommendations will be analysed in the fifth-round mutual evaluation of Costa Rica.


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