El_Salvador El Salvador

New Documents

The Financial Action Task Force of Latin America conducted an on-site visit to El Salvador from Jan. 8 to 19, 2024, as part of the fourth round of mutual evaluations to assess the implementation of international standards on anti-money laundering and counterterrorism financing.

The International Monetary Funds noted that though government e-wallets, such as El Salvador’s Chivo, are important for promoting financial inclusion, they also come with financial stability and integrity risks, along with consumer protection concerns.


Enforcement Actions

0 Items Found

Important Facts

  • The U.S. State Department labels El Salvador as a major money laundering country. In 2020, the country's Attorney General’s office led efforts to make significant progress in combating money laundering. However, poor regulatory AML and CTF oversight and enforcement results in financial crime vulnerabilities, particularly with respect to designated non-financial businesses and professions (DNFBPs). El Salvador's dollarized economy and geographic location make it an ideal haven for transnational organized crime groups, including human smuggling and drug trafficking organizations. Money laundering in El Salvador is primarily related to the proceeds of illegal narcotics trafficking, human trafficking, extortion, tax evasion and corruption. Organized crime groups misuse front companies, travel agencies, remittances, the import and export of goods, and cargo transportation to launder illicit funds. Common methods also include the use of smurfing operations, whereby small amounts of money are deposited or transferred in a specific pattern to avoid detection by government authorities, often in connection with narcotics activities in Guatemala. Also, the free movement of citizens across borders with Guatemala, Honduras and Nicaragua creates a vulnerability for the cross-border movement of contraband and illicit proceeds of crime. Due to a lack of regulation, accountants, auditors, casinos, pawn shops and other DNFBPs do not file suspicious activity reports. The State Department highlights that in 2020, criminal charges were filed in several high-profile money laundering cases, including charges against the former president of the legislative assembly, Sigfredo Reyes.
-Source: 2021 International Narcotics Control Strategy Report (INCSR)



Technical Effectiveness
Compliant : 10 High :
Largely Compliant : 12 Substantial :
Partially Compliant : 18 Moderate :
Non-Compliant : 9 Low :


Rank : 86/141
Score : 4.87/10


Rank : 104/179
Score : 36/100

Tax Justice Network i

Rank : 85/133
Score : 64/100