Guatemala’s AML Overhaul Moves Forward Amid Grey-List Concerns

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Guatemala’s government is pressing ahead with a comprehensive rewrite of its anti-money laundering and counter-terrorist financing (AML/CTF) regime, with lawmakers warning that failure to act could land the country on the Financial Action Task Force (FATF) “grey list.”

First introduced at the end of July, Bill 6593—the Ley Integral contra el Lavado de Dinero u Otros Activos y el Financiamiento del Terrorismo (Comprehensive Law against the Laundering of Money or Other Assets and the Financing of Terrorism)—advanced to its first reading in Congress on September 2. 

It is now under review by the Public Finance and Currency Committee and the Economy and Foreign Trade Committee. The initiative would replace existing legislation with a framework of 126 articles, aligning more closely with FATF and GAFILAT standards.

State media recently highlighted the benefits and key priorities of the bill, including an expansion of entities considered vulnerable for money laundering or terrorist financing, like virtual asset service providers and bingo operators. 

The draft also empowers authorities to order the preventive freezing of suspicious funds, creates new criminal penalties, establishes a new AML/CFT national council (CONCLAFT), and mandates risk-based compliance programs.

FATF grey listing could damage the country’s reputation, posing a risk to Guatemala’s international financial relationships.