FATF Status

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

Compliance with FATF Recommendations

The last Follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Colombia was undertaken in 2023. According to that Evaluation, Colombia was deemed Compliant for 12 and Largely Compliant for 18 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 4 of the Effectiveness & Technical Compliance ratings.

Corruption remains a significant barrier for businesses in Colombia, affecting various sectors and the government hierarchy, with high-profile cases involving top officials. Despite improvements in the Corruption Perceptions Index and the implementation of anti-corruption laws, including the OECD Convention and domestic legislation, corruption persists, particularly in public contracting. The Colombian government has established resources and agencies to combat corruption, but challenges remain in ensuring transparency and accountability.

Colombia's economy, with a population of 52.4 million, has shown signs of slowing growth, expanding by only 0.6 percent in 2023 after a robust post-pandemic recovery. Contributing factors to this slowdown include a 25 percent decrease in investment, high interest rates, and a challenging business climate, particularly affecting key sectors like construction and manufacturing. Despite these challenges, the government has implemented tax reforms aimed at stimulating the economy and increasing employment.

Colombia's investment climate has been characterized by strong direct foreign investment in 2023, despite a backdrop of uncertainty due to the Petro administration's focus on domestic sovereignty in key economic sectors. The economy experienced a significant slowdown, with a 25 percent decrease in investment and a decline in key sectors such as construction and manufacturing. Additionally, Colombia remains below investment grade status, and concerns over proposed structural reforms and high levels of corruption continue to affect investor confidence.