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 against corruption and electoral crimes. The country has established mechanisms for reporting irregularities in government procurement and has signed international anti-corruption conventions, demonstrating its commitment to transparency. Despite some risks associated with the connection between politics and the economy, Chile is considered the least corrupt country in Latin America, with effective institutions in place to investigate and punish corrupt practices.

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 solid macroeconomic policy framework, achieving a modest economic growth of 0.2 percent in 2023, with projections of 2 to 3 percent for 2024.

Chile has a strong investment climate characterized by a high Foreign Direct Investment (FDI) to GDP ratio of nearly 85 percent, supported by market-oriented policies and a sound legal framework that respects private property rights. While the country attracts significant foreign investment, particularly in mining and financial services, challenges such as lengthy permitting processes and concerns over proposed reforms in healthcare and pensions remain. The government is actively working to streamline the investment process and attract foreign capital, especially in sectors related to the green transition.