FATF Status

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

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Chile was undertaken by the Financial Action Task Force (FATF) in 2021. According to that Evaluation, Chile was deemed Compliant for 12 and Largely Compliant for 18 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 3 of the Effectiveness & Technical Compliance ratings.

Chile has implemented various laws to combat public corruption, including the 2009 Transparency Law and proposed new legislation aimed at strengthening enforcement and increasing penalties for corruption-related offenses. The country has established mechanisms for reporting irregularities in government procurement and has seen private companies adopt internal control measures to enhance compliance. Despite some concerns regarding the connection between politicians and the economy, Chile is recognized for its strong institutions and low corruption risks, making it an attractive environment for foreign direct investment.

Chile boasts the third highest GDP per capita in Latin America, reflecting its historical economic stability and prosperity. Despite facing challenges such as civil unrest and the impacts of the COVID-19 pandemic, the country has maintained a strong macroeconomic policy framework, resulting in a projected economic growth of 2 to 3 percent for 2024.

Chile has successfully attracted significant Foreign Direct Investment (FDI), with an FDI to GDP ratio of nearly 85 percent, thanks to its market-oriented policies and sound legal framework that respects private property rights. Key sectors for FDI include mining, financial services, and utilities, although foreign ownership of mineral and fossil fuel deposits is restricted. Despite challenges such as lengthy permitting processes and concerns over proposed government reforms, the current administration is focused on attracting foreign investment, particularly in technological sectors and natural resource extraction related to the green transition.