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 | 30 |
| World Bank: Control of Corruption Percentile Rank | 32 |
Corruption remains a significant challenge for investment in El Salvador, which ranks 126 out of 180 in Transparency International's 2023 Corruption Perceptions Index. Despite the Bukele administration's claims of reduced corruption and increased public confidence, civil society organizations argue that corruption persists, particularly at higher government levels, and that transparency has diminished. While there are laws and institutions aimed at combating corruption, their effectiveness is often questioned, and high-profile corruption cases involving former officials highlight ongoing issues within the political system.
Economy
El Salvador's economy is bolstered by its strategic location, the use of the U.S. dollar, and improved security, leading to a GDP growth of 3.5% in 2023, driven by sectors like construction and tourism. However, challenges such as liquidity constraints and low sovereign credit ratings hinder access to capital markets, while the government's focus on job creation and investment attraction aims to enhance economic competitiveness.
El Salvador's investment climate is bolstered by its strategic location, the use of the U.S. dollar, and recent improvements in security and the business environment. The government has implemented various reforms to attract foreign direct investment, including tax incentives and streamlined regulations, resulting in a significant increase in foreign direct investment inflows in 2023. However, ongoing liquidity challenges and low sovereign credit ratings continue to pose risks to sustainable economic growth.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
