Honduras

New Documents

GAFILAT Publishes Seventh Follow-Up Report of Honduras

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.

March 3, 2020

GAFILAT Releases Mutual Evaluation of Honduras

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.

October 14, 2016

White House: Northern Triangle Leaders Discuss Cooperation on Transnational Criminal Organizations

September 25, 2016

Transparency International Embraces Announcement of New Anti-Corruption Body

January 21, 2016

U.S. Supports Security Programs, AML Initiatives in Northern Triangle

March 3, 2015

News

Weekly Roundup: FinCEN Revokes Banco Delta Asia Blacklisting, US Prosecutors Target Kolomoisky Properties, and More

OFAC slaps sanctions on Carrie Lam, other Hong Kong officials, Wirecard execs may have embezzled $1 billion, and more, in the weekly roundup.

August 7, 2020

Midweek Roundup: White House Proposes Returning Secret Service to Treasury, Withdraws Nomination, and More

FinCEN expects social media-linked digital coins to abide by AML standards, US prosecutors and Puerto Rican lender settle sanctions evasion probe, and more in the midweek roundup.

February 12, 2020

Weekly Roundup: EU Ministers to Discuss Bloc-wide AML Regulator, UK Officials Route Iran Settlement Payment Through Third Country, and More

October 4, 2019

Weekly Roundup: UK Bank Investigated for Terrorist Financing, Huawei Discussed Iran Links with Citigroup and BNP Paribas, and More

August 23, 2019

Weekly Roundup: Brazil Considers Case Against Banco Bradesco, Canada Enhances FIU Data Sharing, and More

May 31, 2019

Enforcement Actions

0 Items Found

Key Documents

Honduras Criminalizes Money Laundering (in Spanish)

May 15, 2002

Honduras Amends Primary AML Law (in Spanish)

March 14, 2008

Honduras Enacts Counterterrorist Financing Controls (in Spanish)

December 11, 2010

Honduras Approves Asset Forfeiture Law (in Spanish)

June 16, 2010

Honduras Creates Commission to Combat Money Laundering (in Spanish)

January 7, 2005

Honduras Requires the Identification of Beneficial Ownership (in Spanish)

January 11, 2012

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. 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 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 system for beneficial ownership registration to identify beneficiaries in complex financial transactions. The country has established the Financial Investigation Police Office, a former ad hoc investigation unit, in order to conduct financial investigations related to money laundering and asset forfeiture.
-Source: 2021 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 : 68/110
Score : 5.52/10

TRANSPARENCY INTERNATIONAL i

Rank : 157/179
Score : 24/100

Tax Justice Network i

Rank : N/A
Score : N/A