Guatemala Country Summary
Sanctions
High Concern
FATF AML Deficient List
Low Concern
Terrorism
Medium Concern
Corruption
High Concern
US State ML Assessment
High Concern
Criminal Markets (GI Index)
High Concern
EU Tax Blacklist
Low Concern
Offshore Finance Center
Low Concern
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
Guatemala is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The last Mutual Evaluation Report follow-up relating to the implementation of anti-money laundering and counter-terrorist financing standards in Guatemala was undertaken in 2018. According to that Evaluation, Guatemala was deemed Compliant for 16 and Largely Compliant for 15 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 4 of the Effectiveness & Technical Compliance ratings.
Sanctions
Guatemala, as a UN member, must support UN sanctions aimed at maintaining international peace and security. The UN Security Council has established 31 sanctions regimes since 1966, which include various measures like economic sanctions and arms embargoes, with a focus on respecting the rights of those targeted.
The EU has established a framework for restrictive measures to support democracy in Guatemala following the 2023 elections. This framework allows the EU to hold accountable those undermining democratic transitions, with measures including travel restrictions and asset freezes against individuals obstructing democracy.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 25 |
| World Bank: Control of Corruption Percentile Rank | 14 |
Corruption is a significant issue in Guatemala, with a low score of 23 on Transparency International's 2023 Corruption Perception Index, ranking it 154 out of 180 countries. Despite legal frameworks against corruption, enforcement is weak, with few prosecutions and ongoing issues in public procurement and customs transactions, leading to frustrations for investors. The government's anti-corruption efforts have been hampered by political instability and the dismantling of the UN-backed International Commission against Impunity, resulting in a pervasive environment of corruption that poses risks for potential investors.
Economy
Guatemala boasts the largest economy in Central America, with a GDP of $102.05 billion in 2023, reflecting a growth rate of 3.5% following a 4.1% increase in 2022. The economy is significantly supported by remittances, which accounted for 19.4% of GDP and increased by 9.8% in 2023, primarily from the United States, while foreign direct investment saw a 7.5% rise to $24.08 billion. Despite these positive indicators, challenges such as bureaucratic impediments, corruption, and complex regulations continue to hinder the investment climate.
Guatemala's investment climate has seen improvements, with the government actively promoting investment opportunities and implementing reforms to enhance competitiveness. However, international companies still face significant challenges due to complex laws, bureaucratic impediments, and corruption, which hinder investment. Despite these obstacles, foreign direct investment has increased, particularly in sectors such as information and communications, manufacturing, and financial services.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings