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 faces significant challenges related to crime and corruption, with a notable presence of organized crime, human trafficking, and drug trafficking, particularly in marginalized and northern regions. Despite the government's efforts to strengthen legal frameworks and combat corruption through various laws and international treaties, vulnerabilities persist, especially in financial crimes and environmental protection, highlighting the need for continued resilience and collaboration among civil society and law enforcement.

Chile boasts the third highest GDP per capita in Latin America, reflecting its historical economic stability and prosperity. Despite facing significant civil unrest in 2019, the government has effectively utilized democratic processes to address social concerns, although recent attempts at constitutional reform have been rejected by voters. The country maintains a strong macroeconomic framework, evidenced by its high sovereign bond ratings and a projected economic growth rate of 2.6 percent for 2024, while also attracting substantial foreign direct investment (FDI) through its market-oriented policies and robust legal framework that respects property rights.

Chile's openness to foreign investment is underscored by an impressive FDI to GDP ratio of nearly 85 percent, with key sectors attracting investment including mining, financial services, and utilities. However, challenges persist, particularly regarding lengthy permitting processes and new legislation aimed at streamlining investment approvals, which is still pending. The government remains committed to enhancing the investment climate, particularly in technology and natural resource extraction, while ensuring compliance with international obligations related to intellectual property and trade agreements.