FATF Status

Costa Rica 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 follow-up relating to the implementation of anti-money laundering and counter-terrorist financing standards in Costa Rica was undertaken in 2024. According to that Evaluation, Costa Rica was deemed Compliant for 17 and Largely Compliant for 20 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 1 of the Effectiveness ratings.

Costa Rica has established a robust legal framework to combat corruption, including laws that penalize bribery and extend to officials' family members. While the enforcement resources are limited, the country has ratified several international anti-corruption conventions and encourages civil society involvement in promoting good governance. Although U.S. firms generally do not view corruption as a significant barrier to business, there are reports of corruption in public tenders and municipal-level issues.

Costa Rica boasts a diversified upper-middle-income economy, characterized by a well-educated labor force and a strong emphasis on attracting foreign direct investment (FDI), which was estimated at USD 3.921 billion in 2023. The country has seen significant growth in sectors such as technology and tourism, contributing to a GDP growth rate of 5.0% in 2023, while the free trade zone economy has also shown robust performance. However, challenges such as a persistent fiscal deficit and high energy costs pose risks to its economic stability.

Costa Rica's investment climate is bolstered by its well-educated labor force, low corruption levels, and attractive incentives for foreign direct investment (FDI), particularly in technology and tourism sectors. In 2023, FDI inflows reached USD 3.921 billion, with the U.S. being the largest investor, accounting for 67% of total FDI. However, challenges such as a persistent fiscal deficit, high energy costs, and infrastructure deterioration pose risks to its investment attractiveness.