Uruguay Country Summary

FATF Status

Uruguay 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 Uruguay was undertaken in 2019. According to that Evaluation, Uruguay was deemed Compliant for 16 and Largely Compliant for 23 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

Uruguay exhibits a relatively low level of corruption, with established laws and institutions aimed at preventing bribery and promoting transparency, although challenges remain in political party financing regulations. The country faces various criminal activities, including human trafficking, drug transit, and arms trafficking, but maintains a resilient governance structure and a generally trustworthy police force, which helps mitigate the impact of organized crime on society.

Uruguay offers a stable and transparent investment climate that treats foreign and national investors equally, with no significant barriers to capital transfer or profit repatriation. The country has been recognized for its democratic stability, ranking as one of the most transparent nations in the Americas, which contributes to a favorable environment for foreign direct investment, particularly in sectors like IT, forestry, and tourism. While domestic and foreign investments have seen fluctuations, recent years have shown a resurgence, aided by strategic initiatives such as free trade agreements and the establishment of free trade zones, positioning Uruguay as a key logistics hub in the region.