Puerto Rico Country Summary

Puerto Rico is a territory of the United States. Information for the United States may be included below:

FATF Status

The U.S.A. is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in the USA was undertaken by in 2024. According to that Evaluation, the USA was deemed Compliant for 9 and Largely Compliant for 23 of the FATF 40 Recommendations. It remains Highly Effective for 4 and Substantially Effective for 4 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Puerto Rico, as a US territory, faces significant challenges related to various criminal markets, including human trafficking, arms trafficking, and drug trade, with foreign criminal networks heavily influencing these activities. The US is also grappling with cyber crimes and financial fraud, leading to substantial economic losses. Despite these issues, the US has shown resilience through international cooperation, a strong legal framework, and efforts to support crime victims, although concerns about corruption and public trust in law enforcement remain.

Puerto Rico has a high-income economy primarily driven by manufacturing sectors such as pharmaceuticals, petrochemicals, and electronics, alongside a significant services sector including tourism. Despite its developed status, the island faces economic challenges like a prolonged recession, high public debt, and vulnerability to natural disasters, which have exacerbated poverty levels and deterred investment.

The investment climate in Puerto Rico benefits from its status as a U.S. territory, offering access to U.S. markets and federal funding. However, challenges such as high public debt, bureaucratic hurdles, and economic instability have made the island less attractive to potential investors. Despite recent initiatives aimed at improving infrastructure and providing tax incentives, the perception of risk remains elevated due to ongoing economic difficulties.