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 robust legal frameworks in place to combat bribery and promote transparency, although challenges remain in political party financing regulations. The country faces some criminal activities, including human trafficking and drug transit, but has strong institutions and a trustworthy police force, contributing to its resilience against crime.

Uruguay presents a favorable economy and investment climate characterized by a stable legal framework that treats foreign and national investments equally, allowing for ease of capital transfer and profit repatriation. The country has been recognized for its transparency, ranking as the most transparent in Latin America in 2023, and maintains a stable democracy, which enhances investor confidence. Despite fluctuations in foreign direct investment over the years, recent tax incentives and a burgeoning tech sector have revitalized interest, with a significant number of U.S. firms operating across various industries, contributing to a positive outlook for future investments.