Guatemala Country Summary

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.

Guatemala faces significant challenges with pervasive corruption and crime, deeply rooted in its political and economic systems. Despite the existence of laws against bribery and corruption, enforcement is weak, with few prosecutions of government officials, leading to a climate where illicit activities, including drug trafficking and human smuggling, thrive, often facilitated by corrupt state actors.

Guatemala, with a GDP of $102.05 billion in 2023, is the largest economy in Central America, experiencing a growth rate of 3.5% that follows a 4.1% increase in 2022. The country has seen a significant drop in inflation, from 9.24% in 2022 to 4.18% in 2023, largely influenced by fluctuations in global energy and food prices. Despite these positive economic indicators, challenges such as bureaucratic hurdles, corruption, and complex regulations continue to hinder foreign investment, even as the government actively promotes investment opportunities and reforms to enhance competitiveness.