Bolivia Country Summary

FATF Status

Bolivia is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 21 June 2013

The FATF welcomes Bolivia’s significant progress in improving its AML/CFT regime and notes that Bolivia has established the legal and regulatory framework to meet its commitments in its Action Plan regarding the strategic deficiencies that the FATF had identified in February 2010. Bolivia is therefore no longer subject to FATF’s monitoring process under its on-going global AML/CFT compliance process. Bolivia will work with GAFISUD as it continues to address the full range of AML/CFT issues identified in its Mutual Evaluation Report.

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Bolivia was undertaken in 2025. According to that Evaluation, Bolivia was deemed Compliant for 14 and Largely Compliant for 19 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 1 of the Effectiveness ratings.

Bolivia has laws that impose criminal penalties for corruption, including bribery of public officials, and offers protections for citizens who report such offenses. However, a 2022 UN report highlighted corruption as a significant national challenge, with cases against pro-government officials rarely advancing. The Interdisciplinary Group of Independent Experts has called for judicial reforms to prevent political misuse of the justice system, and the Inter-American Commission on Human Rights noted Bolivia's compliance with these recommendations.

Bolivia's economy is characterized by state control and interventionist policies, with significant nationalization of key sectors such as energy and mining. Despite having the lowest inflation rate in the region, the economy faces challenges including low foreign direct investment, high public debt, and a fragile financial system marked by liquidity issues and a parallel market for currency. The government prioritizes public investment over private investment, leading to inefficiencies and a lack of incentives for foreign investors.

The investment climate in Bolivia remains challenging, with no significant improvements in trade and investment conditions over the past year. The government prioritizes public investment over private investment, and foreign direct investment is limited, particularly from the United States, due to the abrogation of bilateral investment treaties and a lack of incentives. Additionally, a weak judicial system, bureaucratic hurdles, and interventionist policies contribute to an uncertain environment for investors.