Colombia Country Summary

FATF Status

Colombia 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 relating to the implementation of anti-money laundering and counter-terrorist financing standards in Colombia was undertaken in 2023. According to that Evaluation, Colombia was deemed Compliant for 12 and Largely Compliant for 18 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 4 of the Effectiveness & Technical Compliance ratings.

Colombia faces significant challenges related to crime and corruption, with pervasive issues such as drug trafficking, human smuggling, and environmental crimes exacerbated by corrupt state actors. The government's efforts to combat these problems are hindered by systemic corruption within institutions, leading to weakened law enforcement and judicial systems, while civil society's influence diminishes amidst ongoing violence and humanitarian crises.

Colombia's economy, with a population of 52.4 million, is characterized by a wealth of natural resources and a burgeoning middle class, yet it faces significant challenges under President Gustavo Petro's administration, which has introduced policies emphasizing domestic sovereignty in key sectors. Economic growth slowed to just 0.6% in 2023, influenced by a 25% drop in investment, high-interest rates, and a declining business climate, despite a slight increase in foreign direct investment (FDI) of 1.5% during the same period. The government has implemented tax reforms aimed at revitalizing the economy and addressing fiscal stability, but concerns about regulatory barriers, labor reforms, and the overall investment environment persist, particularly as Colombia remains below investment grade following downgrades by major rating agencies.