Guatemala Country Summary
Medium-High Risk
View full Ratings TableSanctions
Higher Concern
FATF AML Deficient List
Lower Concern
Terrorism
Medium Concern
Corruption
Higher Concern
US State ML Assessment
Higher Concern
Criminal Markets (GI Index)
Higher Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Lower Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
If you would like a demo of our Subscription area, please reserve a day/time that suits you best using this link, or you may Contact Us for further information.
Anti Money Laundering
FATF Status
Guatemala 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 follow-up relating to the implementation of anti-money laundering and counter-terrorist financing standards in Guatemala was undertaken in 2018. According to that Evaluation, Guatemala was deemed Compliant for 16 and Largely Compliant for 15 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 4 of the Effectiveness & Technical Compliance ratings.
Sanctions
Several countries have imposed targeted sanctions on Guatemalan individuals and entities for corruption, human rights abuses, and undermining democracy, notably the United States via OFAC asset freezes and visa bans and the European Union with asset freezes, travel bans, and funding prohibitions for eight individuals and one entity. There are no United Nations sanctions currently imposed against Guatemala, while the United Kingdom, Canada, and Switzerland maintain or align with autonomous measures targeting Guatemalan officials and associates, including asset freezes and travel bans.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 26 |
| World Bank: Control of Corruption Percentile Rank | 14 |
Guatemala faces significant challenges related to crime and corruption, with pervasive issues affecting public procurement and law enforcement. Despite some anti-corruption efforts under the current administration, the political landscape remains marred by corruption, and the effectiveness of the judiciary and law enforcement is hindered by inadequate resources and deep-rooted criminal networks, including those linked to international drug cartels.
Economy
Guatemala boasts the largest economy in Central America, with a projected GDP of $113.2 billion for 2024 and a growth rate of approximately 3.7% following a similar increase in 2023. The country is actively working to enhance its investment climate through legislative reforms and initiatives aimed at attracting foreign direct investment (FDI), particularly in sectors such as finance, manufacturing, and services, with FDI flows increasing by 5.2% in 2024. However, challenges remain, including complex regulations, bureaucratic hurdles, and corruption, which hinder the investment process, despite ongoing efforts by the government, including anti-corruption measures and the establishment of a competition law to promote economic efficiency.
Subscribe to
Professional Plus
- Unlimited Access to full Risk Reports
- Full Dataset Download
- API Access
- Virtual Asset Risk Assessments
