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.

Corruption remains a significant challenge in Guatemala, as evidenced by its low score of 23 on Transparency International's 2023 Corruption Perception Index, ranking it 154 out of 180 countries. Despite laws against bribery and corruption, enforcement is weak, with few prosecutions and ongoing issues in public procurement and customs processes. Recent reforms aimed at increasing transparency and accountability in government procurement have been undermined by persistent allegations of irregularities and nepotism, posing risks for potential investors.

Guatemala boasts the largest economy in Central America, with a GDP of $102.05 billion in 2023 and an estimated 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 in 2023, primarily from the United States, while foreign direct investment saw a 7.5% increase to $24.08 billion.

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, including complex regulations, inconsistent judicial decisions, and corruption, which hinder investment. Despite these obstacles, foreign direct investment (FDI) has increased, particularly in sectors like information and communications, manufacturing, and financial services.