Colombia Country Summary

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 challenge for businesses in Colombia, as highlighted by the WEF Global Competitiveness Index and Transparency International's 2023 Corruption Perceptions Index, which ranked Colombia 87th out of 180 countries. Despite recent improvements and the implementation of various anti-corruption laws and international conventions, corruption persists in customs, taxation, and public works contracts, involving high-level government officials. The Colombian government has established resources and agencies to combat corruption, including the Transparency and Anti-Corruption Observatory and the National Civil Commission for Fighting Corruption, to promote transparency and accountability.

Colombia's economy, with a population of 52.4 million, grew by only 0.6 percent in 2023, reflecting a significant slowdown after two years of recovery from the pandemic. Contributing factors to this decline include a 25 percent drop in investment, high interest rates, and a challenging business climate, particularly affecting key sectors like construction and manufacturing. Despite these challenges, foreign direct investment (FDI) rose by 1.5 percent from 2022 to 2023, indicating some resilience in attracting capital.

Colombia's investment climate is characterized by a comprehensive legal framework that supports foreign direct investment (FDI), bolstered by the 2012 U.S.-Colombia Trade Promotion Agreement. However, recent policy shifts under President Gustavo Petro's administration have introduced uncertainty, particularly with proposed reforms in health, labor, and pensions, which have raised concerns among investors. Despite these challenges, FDI grew by 1.5 percent between 2022 and 2023, indicating some resilience in attracting foreign capital.