Name
Global FinTech Guide
Country _ Name
Bolivia
SectionTitle
KYC requirements
Body
The know your customer or know your client (KYC) guidelines and regulations for financial services require that professionals try to verify the identity, suitability, and risks involved with maintaining a business relationship.

Legal affairs

National regulatory framework regarding AML and effective date of the regulations

Bolivia maintains a comprehensive AML/CFT regulatory regime, aligned with FATF and GAFILAT standards, with key components as follows:

Main Laws and Regulations Law No. 393 – Financial Services Law (2013)

    • Strengthens AML obligations for supervised entities (banks, cooperatives, etc.).
    • Requires KYC, recordkeeping, internal controls, and reporting to UIF Bolivia.
Law No. 262 – Financing of Terrorism Law (2012)

    • Criminalizes financing of terrorism and provides investigative measures.
Law No. 004 (Marcelo Quiroga Santa Cruz, 2010)

    • Addresses anti-corruption and illicit enrichment; defines predicate offenses relevant to AML.
Law No. 1768 – Criminal Code Reform

    • Updates AML offenses and predicate crimes (e.g., drug trafficking, tax evasion, corruption).
Resolutions by UIF Bolivia & ASFI

    • Technical norms for financial and non-financial entities (banks, insurance, lawyers, casinos, etc.).
    • Key duties: KYC, Suspicious Transaction Reports (STRs), Currency Transaction Reports (CTRs), 10-year recordkeeping, and risk-based monitoring.
Sector-Specific Guidelines

    • DNFBPs (real estate, luxury goods dealers, lawyers) must also implement AML compliance programs.


National regulator or relevant authority for AML controls

Primary AML Authority in Bolivia Unidad de Investigaciones Financieras (UIF Bolivia)
Website: https://www.uif.gob.bo
Role and Responsibilities:

  • Acts as Bolivia’s Financial Intelligence Unit (UIF).
  • Receives, analyzes, and disseminates financial intelligence on money laundering and terrorism financing.
  • Supervises both financial institutions and Designated Non-Financial Businesses and Professions (DNFBPs) for AML compliance.
  • Issues binding resolutions and guidelines (KYC, risk-based monitoring, reporting obligations).
  • Coordinates with the Public Prosecutor (Fiscalía), ASFI, and international enforcement agencies.
Powers:

  • Collect and analyze Suspicious Transaction Reports (STRs) and Currency Transaction Reports (CTRs).
  • Conduct inspections, audits, and investigations.
  • Impose administrative sanctions for AML/CFT non-compliance.
  • Provide training and technical assistance to obligated entities.
Other Key AML/CFT Authorities
Authority

Role

ASFI

Supervises AML compliance of banks, cooperatives, and other financial entities; enforces UIF guidelines.
Ministry of Economy and Public Finance

 Works with UIF on financial transparency and systemic risk prevention.
Fiscalía General del Estado (Public Prosecutor’s Office)

 Leads criminal investigations and prosecutions for money laundering and terrorism financing.
Customs (AN) & Tax Authority (SIN)

 Monitor cross-border trade, tax fraud, and suspicious financial flows.


Customer Due Diligence

Conduct of a typical KYC identification process

Key Components of KYC Customer Identification (Identificación del Cliente)
Natural Persons:

  • Valid ID: Cédula de Identidad (CI) for Bolivians, foreigner ID, or passport with residency documents.
  • Required data: full name, birth date/place, nationality, occupation, contact details.
  • Photocopy of ID and possibly an institutional photo.
Legal Entities:

  • Required documents: NIT (tax ID), company incorporation deed, and power of attorney of legal representative.
  • Beneficial Owners (UBOs) must be identified under AML rules.
Data Verification (Verificación de Datos)

  • Documents are verified with SEGIP (civil registry), SERECI, internal databases, and UIF watchlists.
  • For businesses, checks may involve Fundempresa (commercial registry) and SIN (tax authority).
Risk Profiling (Perfil del Cliente)

  • Customers are classified as low, medium, or high risk based on:
    • Type of client (individual or corporate).
    • Geography (domestic or foreign).
    • Frequency/type of transactions.
    • Source of funds.
Ongoing Due Diligence (Monitoreo Continuo)

  • Regular monitoring of transactions to detect suspicious activity.
  • KYC data updated every 1–3 years or when red flags arise.
  • Suspicious Transaction Reports (STRs) must be sent to UIF when anomalies are detected.
Enhanced Due Diligence (EDD)

  • Applied to Politically Exposed Persons (PEPs), high-risk jurisdictions, and large or complex transactions.
  • Requires:
    • Extra documentation on the source of funds.
    • Senior management approval.
    • More frequent and detailed monitoring.


Possibility to meet customer due diligence requirements by relying on third parties who are obliged by law themselves to comply with AML regulations
Yes, under Bolivian AML regulations, it is possible to meet Customer Due Diligence (CDD) requirements by relying on third parties, provided certain conditions are met. This practice is generally allowed under the risk-basedapproach adopted by the Unidad de Investigaciones Financieras (UIF Bolivia) and aligned with FATF Recommendation 17.
Legal Basis and Guidelines
Permitted Under AML Law and UIF Resolutions
Bolivia’s AML/CFT framework, particularly through the Unidad de Investigaciones Financieras (UIF) resolutions and ASFI supervisory rules, permits regulated entities to delegate certain CDD tasks (such as customer identification and verification) to third parties.
Conditions include:

    • The third party must also be subject to Bolivian AML obligations.
    • A formal written agreement or arrangement must be established.
    • The third party must provide immediate access to relevant CDD records and documents upon request.
Primary Institution Retains Responsibility
The regulated entity remains ultimately responsible for AML compliance, even if some CDD functions are delegated.
Obligations include:

    • Ensuring the third party’s competence and reliability.
    • Conducting periodic reviews of the third party’s AML compliance and reporting.
    • Maintaining access to records for a minimum of 10 years in accordance with Bolivian law.
Conditions for Relying on Third Parties
Requirement

 Explanation
Regulated Status

 Third party must be subject to Bolivian AML/CFT regulation (e.g., banks, insurance companies).
Written Agreement

 Formalizes the arrangement and defines roles and responsibilities.
Access to Data

 The regulated institution must have prompt access to CDD data and documentation.
Ongoing Monitoring

 Periodic assessment of the third party’s AML controls and risk exposure is required.
No Outsourcing of Key AML Functions

 The institution must internally conduct risk assessment, transaction monitoring, and suspicious transaction reporting.
What Is Not Allowed
  • Complete outsourcing of the AML program, including risk classification, transaction monitoring, and STR filing.
  • Reliance on unregulated third parties (such as informal agents or unlicensed FinTechs) is prohibited.
Examples of Acceptable Third Parties
  • Banks or cooperatives regulated by ASFI.
  • Insurance companies under Bolivian regulation.
  • Stock brokerage firms supervised by the SPVS (Superintendencia de Pensiones, Valores y Seguros).
  • Notaries and real estate companies classified as Designated Non-Financial Businesses and Professions (DNFBPs) under UIF oversight.

Possibility to outsource customer due diligence by contract to other third parties who are not obliged by law to meet AML regulations and rely on these (e.g., WebID, IDnow, PostIdent)

Legal Status

  • Outsourcing technical components of Customer Due Diligence (CDD) — such as identity verification via video ID, facial recognition, or biometric checks — to unregulated third-party service providers is permittedin a limited and highly controlled manner.
  • However, the legal responsibility for CDD and AML compliance always remains with the regulated financial institution.
Key Legal and Regulatory Conditions Ultimate Responsibility with Regulated Institution

  • UIF Bolivia and ASFI emphasize that the regulated entity must maintain full accountability for AML compliance, including risk assessment, transaction monitoring, and suspicious transaction reporting (STR).
  • These core AML functions cannot be delegated or outsourced.
Third Party as a “Service Provider” Only

  • The unregulated third party acts strictly as a technology or service provider under a formal contract.
  • The contract must include data protection, confidentiality, and audit provisions.
  • The financial institution must retain full access to all CDD data and documentation for at least 10 years.
Data Protection Compliance

  • If the provider is foreign or outside Bolivian jurisdiction, the institution must ensure compliance with Bolivia’s Ley N° 164 on data protection, including:
    • Adequate safeguards for cross-border data transfers.
    • Encryption and security of data.
    • Accessibility of data to Bolivian authorities upon request.
Regulatory Notification or Authorization

  • UIF Bolivia or ASFI may require prior notification or formal approval when engaging unregulated third parties for parts of the CDD process, especially if it affects the integrity of identity verification or risk classification.
Not Permitted
  • Treating unregulated third parties as if they were regulated AML entities.
  • Outsourcing core AML functions, including:
    • Risk classification and profiling
    • Transaction monitoring
    • Suspicious transaction reporting (STR)


Presence of a license or registration requirement for the third party in case of outsourcing customer due diligence

In Bolivia, when a regulated entity outsources aspects of Customer Due Diligence (CDD)—such as identity verification—to a third party, the law does not explicitly require the third party to hold a specific license or registration if that third party is not conducting regulated financial activities.

However, several important limitations and obligations apply, depending on who the third party is and what function they perform.



Further questions

Entities that could be relied on specifically by law as a third party to comply with AML regulations (regardless of outsourcing)
Yes credit institutions
Yes financial institutions
Yes auditors, external accountants, and tax advisors
Yes notaries and other independent legal professionals
Yes other trust or company service providers
Yes estate agents
Yes other persons trading high-value goods
Yes providers of gambling services


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