Honduras

New Documents

The Financial Action Task Force of Latin America released a seventh enhanced follow-up report for Honduras, which re-rates the jurisdiction with Technical Recommendations 3, 10, 17, 23, 29 and 34.

The Financial Action Task Force of Latin America published a mutual evaluation report for Honduras, concluding the nation has a low effectiveness score in two out of 11 categories and is non-compliant or partially compliant with 10 recommendations.

News

Enforcement Actions

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Important Facts

  • The U.S. State Department labels Honduras as a major money laundering country. Honduras is not an important regional or offshore financial center. Money laundering in the country stems primarily from public corruption and narcotics trafficking by organized criminal groups, particularly cocaine, throughout the region. Other major sources of illicit funds include embezzlement, extortion, kidnapping, smuggling and counterfeiting. Honduras' geographic location makes it an ideal haven for transnational organized crime groups, including human and drug trafficking organizations. A significant amount of laundered proceeds pass directly through the formal banking system, but illicit funds are also known to pass through the non-financial sector, in particular the automobile sector, real estate, remittance companies, currency exchange houses, the construction sector and cattle ranching in remote areas of Honduras. The State Department notes that Honduras established a comprehensive national anti-money laundering strategy in 2019. Honduras has comprehensive know-your-customer and suspicious transaction reporting regulations, but additional procedures are necessary for full implementation of the country’s 2015 AML law. In addition, bearer shares are legal in Honduras and there is no access to quality beneficial ownership information in the country. The State Department further underlines that disconnect between the judicial branch and regulatory agencies regarding the application of money laundering and asset forfeiture statutes has a negative impact on investigations in Honduras.
-Source: 2020 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 methodology

Technical Effectiveness
Compliant : 18 High : 1
Largely Compliant : 14 Substantial : 2
Partially Compliant : 6 Moderate : 6
Non-Compliant : 2 Low : 2

Honduras' technical compliance was re-rated in a Janurary 2020 follow-up report

BASEL i

Rank : 50/141
Score : 5.54/10

TRANSPARENCY INTERNATIONAL i

Rank : 146/180
Score : 26/100

Tax Justice Network i

Rank : N/A
Score : N/A