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 Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Bolivia was undertaken in 2023. According to that Evaluation, Bolivia was deemed Compliant for 12 and Largely Compliant for 16 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 1 of the Effectiveness ratings.

Corruption remains a significant issue in Bolivia, with laws in place to penalize officials for corrupt activities, yet enforcement is weak and cases against pro-government officials are rarely pursued. Reports from organizations like the UN and the Inter-American Commission on Human Rights highlight the need for judicial reforms to prevent political misuse of the justice system and ensure due process. Despite Bolivia's ratification of international anti-corruption conventions, widespread bribery and patronage networks continue to hinder business and governance.

Bolivia's economy is characterized by state control and interventionist policies, with significant nationalization of strategic 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, compounded by recent downgrades from multiple rating agencies due to poor fiscal policies and low reserves.

The investment climate in Bolivia remains challenging, with no significant improvements in trade and investment conditions over the past year. The government's interventionist policies, including nationalization in strategic sectors and a lack of incentives for foreign direct investment, contribute to an uncertain environment for investors. Additionally, a compromised judicial system and bureaucratic hurdles further deter potential investments.