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 challenge in Bolivia, despite laws criminalizing bribery and providing protections for whistleblowers. Reports indicate that corruption is pervasive, particularly among pro-government officials, and enforcement of anti-corruption laws is weak, leading to widespread impunity. Recommendations for judicial reforms have been made to ensure due process and prevent political misuse of the judiciary, but progress has been slow.

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 is fragile, facing challenges like low foreign direct investment, high public debt, and liquidity issues in the banking sector, which have led to a parallel market for dollars. Recent downgrades by multiple rating agencies reflect concerns over Bolivia's economic stability and fiscal policies.

The investment climate in Bolivia remains challenging for foreign investors, characterized by a lack of significant improvements in trade and investment conditions over the past year. The government's interventionist policies, particularly the nationalization of strategic sectors and a complicated regulatory environment, create legal uncertainties and discourage foreign direct investment, especially from the United States, which has seen no significant influx since the abrogation of its Bilateral Investment Treaty in 2012.