Costa Rica Country Summary

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. Despite limited enforcement resources, the country has ratified several international anti-corruption agreements and encourages civil society engagement in governance and transparency. While U.S. businesses generally do not view corruption as a significant barrier, some have reported issues related to public tenders and municipal-level corruption.

Costa Rica boasts a diversified upper-middle-income economy and is recognized as the oldest continuous democracy in Latin America. The country has attracted significant foreign direct investment, estimated at USD 3.921 billion in 2023, with a notable GDP growth of 5.0% in the same year, driven by sectors such as technology and tourism, which together contribute substantially to economic productivity.

Costa Rica's investment climate is bolstered by its stable democracy, educated workforce, and attractive incentives for foreign direct investment (FDI), with an estimated inflow of USD 3.921 billion in 2023, primarily from the United States. However, challenges such as a persistent fiscal deficit, high energy costs, and infrastructure deterioration pose risks to its investment appeal. The government is actively working to attract new investments, particularly in the semiconductor sector, while maintaining a focus on regulatory improvements and international collaboration.