Costa Rica Country Summary

FATF Status

Costa Rica is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report follow-up relating to the implementation of anti-money laundering and counter-terrorist financing standards in Costa Rica was undertaken in 2024. According to that Evaluation, Costa Rica was deemed Compliant for 17 and Largely Compliant for 20 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 1 of the Effectiveness ratings.

Costa Rica faces significant challenges related to crime and corruption, particularly with issues such as human trafficking, drug trafficking, and organized crime involving local gangs and transnational cartels. Despite these challenges, the country has a strong institutional framework and legal measures in place to combat corruption, supported by active civil society engagement and international cooperation aimed at enhancing governance and law enforcement capabilities.

Costa Rica boasts a stable and diversified upper-middle-income economy, characterized by a well-educated labor force and a mature regulatory framework, making it an attractive destination for foreign direct investment (FDI). In 2024, the country experienced a GDP growth of 4.4%, with FDI inflows estimated at $4.322 billion, primarily from the United States, which accounted for 70% of total investments. Despite facing challenges such as a fiscal deficit, high energy costs, and infrastructure deterioration, Costa Rica's government is actively promoting investment through incentives like free trade zones and has prioritized reforms to enhance its investment climate, particularly following its accession to the OECD in 2021.