El Salvador Country Summary
Sanctions
No
FATF AML Deficient List
No
Terrorism
Corruption
US State ML Assessment
Criminal Markets (GI Index)
EU Tax Blacklist
Offshore Finance Center
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF Status
El Salvador is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The latest Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in El Salvador was undertaken in 2024. According to the follow-up Evaluation, El Salvador was deemed Compliant for 6 and Largely Compliant for 25 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective 1 of the Effectiveness ratings.
Sanctions
There are no international sanctions currently in force against this country
Bribery & Corruption
| Rating | 0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 31 |
| World Bank: Control of Corruption Percentile Rank | 32 |
Corruption remains a significant challenge for investment in El Salvador, as evidenced by its low ranking in Transparency International's 2023 Corruption Perceptions Index. Despite the Bukele administration's claims of reduced corruption and increased public confidence in government institutions, civil society organizations argue that corruption persists, particularly at high levels, and that the government's lack of transparency exacerbates the issue. Numerous corruption scandals involving former officials highlight the ongoing struggle against corruption, with limited accountability and enforcement of existing laws.
Economy
El Salvador's economy is bolstered by its strategic location, the use of the U.S. dollar, and recent improvements in security and the business environment, leading to a GDP growth of 3.5% in 2023. However, ongoing liquidity challenges and low sovereign credit ratings hinder access to capital markets, while foreign direct investment saw a significant increase, reaching $759.7 million in 2023, primarily in sectors like tourism and construction.
El Salvador's investment climate is bolstered by its strategic location, the use of the U.S. dollar, and significant improvements in security and the business environment. The government has implemented reforms to attract foreign direct investment, including tax incentives and streamlined regulations, which have resulted in a dramatic increase in foreign direct investment inflows in 2023. However, ongoing liquidity challenges and low sovereign credit ratings remain obstacles to sustainable economic growth.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
