INSUBCONTINENT EXCLUSIVE:
Uruguay, a beacon of economic stability in Latin America, is grappling with a troubling rise in suspicious financial activities.In 2024, the
country recorded 964 suspicious transaction reports (STRs) linked to potential money laundering and terrorist financing, a 5.8% increase
These figures represent a significant jump from 2017 when just 398 reports were recorded.While the increase reflects improved oversight, it
Hub Status Tested by Rising Money Laundering Risks
(Photo Internet reproduction)However, these same features have made it an attractive target for illicit financial flows
Government data reveals that investigations into money laundering tied to drug trafficking nearly doubled between 2018 and 2022, rising from
To counter these risks, Uruguay enacted Law No
19,574 to align its anti-money laundering (AML) framework with international standards set by the Financial Action Task Force (FATF).The law
broadened reporting requirements to include non-financial sectors and introduced stricter customer due diligence rules
Yet, enforcement remains a weak point
STRs tell a more complex story
Critics argue that while its legal framework appears strong on paper, enforcement gaps exist.These gaps leave room for exploitation
Cross-border risks and emerging threats like drug-related laundering further complicate the landscape
Uruguay now stands at a critical juncture.As it balances its role as a regional financial hub with the need for tighter controls, its
