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 legislative proposals aimed at strengthening enforcement and increasing penalties for corruption-related offenses. The country maintains a robust framework for transparency in government procurement and corporate governance, supported by active NGOs and compliance systems within private firms. Despite some risks associated with political and economic connections, corruption is not seen as a significant barrier to foreign direct investment, and Chile is recognized as the least corrupt country in Latin America.

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 aftermath of the COVID-19 pandemic, the country has maintained a strong macroeconomic policy framework, with projected economic growth of 2 to 3 percent in 2024. Chile continues to attract significant foreign direct investment, particularly in sectors like mining and financial services, supported by a sound legal framework and respect for private property rights.

Chile has a favorable investment climate characterized by a strong legal framework and significant opportunities for foreign direct investment (FDI), particularly in sectors such as mining, financial services, and utilities. The country maintains a high FDI to GDP ratio of nearly 85 percent, and foreign investors are generally treated equally to domestic firms. However, challenges such as lengthy permitting processes and concerns over potential government reforms in key sectors may impact investment decisions.