Chile Country Summary

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 recent proposed legislation aimed at strengthening enforcement and increasing penalties for corruption-related offenses. The country mandates asset disclosure for public officials and their families, while political parties are subject to campaign financing transparency laws. Additionally, Chile is an active participant in international anti-corruption conventions and organizations, and NGOs investigating corruption operate freely, with U.S. firms not identifying corruption as a barrier to foreign direct investment.

Chile boasts the third highest GDP per capita in Latin America, reflecting its historical economic stability and prosperity. The country's economic growth was 0.2 percent in 2023, with projections of 2 to 3 percent for 2024, supported by a strong macroeconomic policy framework and significant foreign direct investment opportunities, particularly in mining and financial services.

Chile has successfully attracted significant Foreign Direct Investment (FDI), boasting an FDI to GDP ratio of nearly 85 percent, thanks to its market-oriented policies and sound legal framework that respects private property rights. While the country is generally welcoming to foreign investors, challenges such as lengthy permitting processes and concerns over potential government reforms in key sectors remain. The current administration is focused on enhancing foreign investment, particularly in technological sectors and natural resource extraction related to the green transition.