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 has implemented various anti-corruption laws, including the 2009 Transparency Law and proposed new legislation aimed at strengthening enforcement against corruption and economic crimes. Despite these efforts, challenges remain in areas such as financial crime, human trafficking, and environmental crimes, with organized crime largely operating through decentralized networks. The government continues to work on enhancing legal frameworks and collaboration with civil society to address these issues, although vulnerabilities persist.

Chile boasts the third highest GDP per capita in Latin America, reflecting its historical economic stability and prosperity. The country's economic growth was 0.2 percent in 2023, with projections of 2 to 3 percent for 2024, supported by a strong macroeconomic policy framework and significant foreign direct investment opportunities, particularly in mining and financial services.

Chile has successfully attracted significant Foreign Direct Investment (FDI), boasting an FDI to GDP ratio of nearly 85 percent, thanks to its market-oriented policies and sound legal framework that respects private property rights. While the country is generally welcoming to foreign investors, challenges such as lengthy permitting processes and concerns over potential government reforms in key sectors remain. The current administration is focused on enhancing foreign investment, particularly in technological sectors and natural resource extraction related to the green transition.