Guatemala

New Documents

The Financial Action Task Force of Latin America published a Third Enhanced Follow-up Report on Guatemala, concluding that the jurisdiction has made improvements with regard to the Financial Action Task Force’s Technical Recommendations 15 and 16.

Maja Kocijancic, the European Union’s spokesperson for Foreign Affairs and Security Policy/European Neighbourhood Policy and Enlargement Negotiations, issued a statement on Guatemala’s decision not to renew the International Commission against Impunity in Guatemala mandate past 2019.

Enforcement Actions

0 Items Found


Important Facts

  • The U.S. State Department labels Guatemala as a major money laundering country. The country serves as a key transit route for South American cocaine, heroin and synthetic drug precursors destined for the United States and for cash returning to South America. While it has shown some incremental improvements in the ability to investigate and prosecute money laundering cases, challenges remain related to the investigation of corruption, extortion and drug trafficking offenses. Other sources of laundered funds include human trafficking, commerce of other illicit goods, institutional corruption and tax evasion. Money is often laundered through small transactions below the $10,000 reporting transaction either in small banks along the Guatemala-Mexico border, or by travelers carrying cash to other countries. Money is also commonly laundered through real estate transactions, ranching and the gaming industry. The Central America Four Border Control Agreement among El Salvador, Guatemala, Honduras and Nicaragua allows citizens to enter each country without passing through immigration or customs inspection, making the area vulnerable to the cross-border movement of contraband and illicit proceeds. Casinos and games of chance operators in the country also remain unregulated. Despite Guatemala’s improved anti-money laundering legal framework and efforts to improve due diligence for politically exposed persons, the country has major deficiencies regarding to supervision of designated non-financial businesses and professions. From Jan. 1 through Nov. 6, 2019, Guatemala filed money laundering charges in 179 cases and obtained 87 convictions.
-Source: 2020 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 16 High : 0
Largely Compliant : 15 Substantial : 4
Partially Compliant : 9 Moderate : 7
Non-Compliant : 0 Low : 0

Guatemala's technical compliance was re-rated in a Oct. 4, 2018 follow-up report

BASEL i

Rank : 72/141
Score : 5.1/10

TRANSPARENCY INTERNATIONAL i

Rank : 146/180
Score : 26/100

Tax Justice Network i

Rank : 69/133
Score : 74/100