Chile Country Summary

FATF Status

Chile 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 relating to the implementation of anti-money laundering and counter-terrorist financing standards in Chile was undertaken by the Financial Action Task Force (FATF) in 2021. According to that Evaluation, Chile was deemed Compliant for 12 and Largely Compliant for 18 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 3 of the Effectiveness & Technical Compliance ratings.

Chile is actively working to combat corruption through various legislative measures, including the 2009 Transparency Law and recent proposals aimed at strengthening enforcement against economic and electoral crimes. Despite these efforts, the country faces significant challenges with organized crime, including human trafficking, drug trafficking, and financial crimes, which are exacerbated by decentralized criminal networks and vulnerabilities in enforcement and environmental protection.

Chile boasts the third highest GDP per capita in Latin America, reflecting its historical economic stability and prosperity. Despite facing political challenges, including civil unrest and the rejection of constitutional reforms, the government has maintained a solid macroeconomic policy framework that supports foreign direct investment (FDI), particularly in sectors such as mining and financial services. While Chile remains an attractive destination for investment due to its transparent legal system and respect for property rights, it faces challenges such as lengthy permitting processes and concerns regarding proposed reforms in key sectors like healthcare and pensions, which could impact investor confidence.