FATF Status

Costa Rica is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report follow-up relating to the implementation of anti-money laundering and counter-terrorist financing standards in Costa Rica was undertaken in 2024. According to that Evaluation, Costa Rica was deemed Compliant for 17 and Largely Compliant for 20 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 1 of the Effectiveness ratings.

Costa Rica has established a robust legal framework to combat corruption, including laws that penalize bribery and extend to officials' family members. Despite limited enforcement resources, the country has ratified several international anti-corruption agreements and encourages civil society engagement in governance and transparency. While U.S. businesses generally do not view corruption as a significant barrier, some have reported issues related to public tenders and municipal-level corruption.

Costa Rica boasts a diversified upper-middle-income economy and is recognized as the oldest continuous democracy in Latin America. In 2023, the country experienced a GDP growth of 5.0%, with foreign direct investment inflows estimated at USD 3.921 billion, primarily from the United States. The economy benefits from a well-educated labor force, low corruption levels, and a strong emphasis on export-oriented technology and tourism sectors.

Costa Rica's investment climate is characterized by a well-educated labor force, low corruption levels, and attractive incentives for foreign direct investment (FDI), particularly in technology and tourism sectors. In 2023, FDI inflows reached USD 3.921 billion, with the U.S. being the largest investor. However, challenges such as a persistent fiscal deficit, high energy costs, and infrastructure deterioration pose risks to the investment environment.