Honduras Country Summary
Medium Risk
View full Ratings TableSanctions
Lower 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.
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Anti Money Laundering
FATF Status
Honduras is no longer 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 Honduras was undertaken in 2020. According to that Evaluation, Honduras was deemed Compliant for 18 and Largely Compliant for 14 of the FATF 40 Recommendations. It remains Highly effective for 1 and Substantially Effective for 2 of the Effectiveness & Technical Compliance ratings.
Sanctions
There are currently no international sanctions in force against Honduras.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 22 |
| World Bank: Control of Corruption Percentile Rank | 15 |
Honduras faces significant challenges related to crime and corruption, with pervasive issues in the public sector and judiciary that hinder investment and governance. The country is a hub for various criminal activities, including human trafficking, drug trafficking, and extortion, while the resilience of its institutions is undermined by corruption, inadequate resources, and a lack of effective law enforcement and judicial systems.
Economy
Honduras presents a mixed economic and investment climate characterized by both competitive advantages and significant challenges. The country benefits from a strategic location, strong trade agreements under CAFTA-DR, and a skilled labor force, which attract both domestic and international investments, particularly in sectors like automotive manufacturing. However, persistent issues such as corruption, macroeconomic imbalances, political uncertainty, and a lack of clarity in regulatory processes hinder the overall investment environment, leading to investor reluctance and complicating efforts to create a more favorable business climate.
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