Bolivia plans to strengthen sanctions against financial insitutions that fail to report suspicious transactions, which could signal money laundering, to the authorities.
Finance Minister Luis Arce annouced the scheme and said that the penalties would range from fines to the suspension of operating licences.
There will also be personal penalties for individuals involved in failures to report such transactions.
The criminal code currently lacks sanctions against institutions and individuals which turn a blind eye to laundering. This move will bring Bolivia into line with international standards, according to the government.
The government estimated recently that drug trafficking in Bolivia has revenues of between $300 million and $700 million a year.
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