Guatemala 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
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 various sanctions regimes since 1966, which include economic sanctions and targeted measures like arms embargoes and travel bans. Currently, there are 15 ongoing sanctions regimes focused on political settlements, nuclear non-proliferation, and counter-terrorism, with a Consolidated List of individuals and entities subject to these measures.
On January 12, 2024, the EU established a framework for restrictive measures to support democracy in Guatemala following the 2023 elections. This framework aims to hold accountable those undermining the democratic transition and includes travel restrictions and asset freezes for individuals obstructing democracy. The EU remains committed to supporting Guatemala's development and strengthening democratic governance.
Bribery & Corruption
| Rating | 0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 23 |
| World Bank: Control of Corruption Percentile Rank | 11 |
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 legal frameworks 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 have been undermined by political actions, contributing to a pervasive environment of corruption that deters 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 in 2023, and the government is actively working to enhance competitiveness and attract foreign investment, despite facing challenges such as bureaucratic impediments and corruption.
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, bureaucratic impediments, and corruption, which hinder investment. Despite these issues, 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
