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 conflict-of-interest in public procurement. The country has ratified several international anti-corruption agreements and encourages civil society involvement in promoting good governance and transparency. While corruption is not seen as a major barrier for U.S. businesses, some concerns have been raised regarding municipal-level corruption in public tenders and permit processing.

Costa Rica boasts a diversified upper-middle-income economy characterized by a well-educated labor force and relatively low corruption levels, making it attractive for foreign investment. In 2023, the country experienced a GDP growth of 5.0% and received an estimated USD 3.921 billion in foreign direct investment, with the United States being the largest contributor. The economy is bolstered by successful technology and tourism sectors, which together significantly contribute to GDP and employment.

Costa Rica's investment climate is characterized by a well-educated labor force and attractive incentives for foreign direct investment (FDI), particularly in technology and tourism sectors. Despite challenges such as a persistent fiscal deficit and high energy costs, the country has successfully attracted significant FDI, with an estimated inflow of USD 3.921 billion in 2023, primarily from the United States. The government continues to prioritize foreign investment through regulatory reforms and initiatives aimed at reducing bureaucratic hurdles.