Money Laundering in Costa Rica: Crypto and Real Estate

Money Laundering in Costa Rica: The Legal Risk Behind Crypto and Real Estate Transactions

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Real estate and crypto assets share one trait that makes them especially sensitive to money laundering in Costa Rica: both let people move large sums quickly, and, without careful documentation, with real opacity. Costa Rica applies a specific prevention framework to each sector. On top of that framework sits one of the most severe offenses in the entire Criminal Code: up to 20 years in prison.

Why crypto and real estate concentrate this risk

Virtual assets and real property share three traits that international AML bodies treat as high-risk factors. First, both can move large amounts of value at once. Second, both allow complex ownership structures, such as companies, trusts, or intermediaries. Third, and especially with crypto assets, funds can cross borders without ever touching a traditional bank.

Costa Rica is no exception. In fact, both sectors fall under a specific prevention framework inside Law N.° 7786 (the Law on Narcotics, Psychotropic Substances, Unauthorized Drugs, Money Laundering, and Related Activities) and its related regulations.

The crime of money laundering (Art. 69)

Article 69 of Law 7786 defines the crime of money laundering — commonly known as capital legitimization — in two forms:

• Acquiring, converting, or transferring assets of economic value, knowing they originate from a serious crime, or taking any action to hide or disguise their illicit origin, or to help someone involved in the original crime avoid the legal consequences of their actions.
• Hiding or disguising the true nature, origin, location, destination, movement, or ownership rights over assets that come, directly or indirectly, from a serious crime.

The base penalty is 8 to 20 years in prison. However, an aggravated form carries 10 to 20 years when the assets come specifically from drug trafficking, psychotropic substances, or terrorist financing.

The “predicate offense”: almost any serious crime can trigger it

Here’s the point most people underestimate: the law doesn’t require the money to come from drug trafficking. Instead, it uses the term “serious crime”, defined as any offense punishable by four years in prison or more. That definition is deliberately broad. As a result, it connects money laundering to almost any serious economic crime, including:

• Tax fraud against the Public Treasury (Art. 92 CNPT), punishable by 5 to 10 years — see our guide on Tax Crime in Costa Rica for a full breakdown of amounts and scenarios.
• The crimes covered by Law 9699 on corporate criminal liability (corruption, bribery, transnational bribery), punishable by 3 to 15 years depending on the offense — see our guide on Corporate Criminal Liability in Costa Rica.
• Fraud, fraudulent administration, and other serious property crimes.

The practical consequence is direct. Any transaction — buying a property, acquiring crypto assets, capitalizing a company — that involves funds tied to one of these crimes can lead to a separate money laundering charge, on top of the original offense.

Two procedural points worth knowing: autonomy and forfeiture

One procedural detail often surprises people, even those who already know the law: money laundering is an autonomous crime. In other words, the Public Prosecutor’s Office doesn’t need a final, prior conviction for the underlying serious crime to bring a laundering charge. Instead, prosecutors can prove that predicate offense within the same trial that judges the laundering charge itself. As a result, this gives prosecutors considerably more room to act. It also narrows any defense based solely on “I haven’t been convicted of the original crime yet.”

In addition, a money laundering conviction usually comes with forfeiture of the related assets. That means the permanent loss of the property, crypto assets, or cash involved, to the State. This connects directly with our asset recovery and property protection work, both for someone defending assets against an improper forfeiture and for a fraud victim trying to recover them.

Real estate as a regulated sector (Arts. 15 bis and 15 ter)

Law 7786 does more than define the crime itself. In addition, it imposes preventive duties on people operating in high-risk sectors. Two groups matter most for real estate:

• Real estate developers (Art. 15 bis): classified as Designated Non-Financial Businesses and Professions, they must register with the Superintendencia General de Entidades Financieras (SUGEF), appoint a compliance officer, and run a prevention program covering money laundering, terrorist financing, and financing of weapons proliferation (AML/CFT/CPF), scaled to their risk level.
• Notaries public (Art. 15 ter): independent obligated entities, supervised by the National Notary Directorate together with the Financial Intelligence Unit (FIU) of the Costa Rican Drug Institute. They must register on the FIU-Reports platform, apply customer due diligence, and file Suspicious Transaction Reports when needed. This duty matters especially because almost no real estate closing in Costa Rica happens without a notary.

The $10,000 threshold and transaction reporting

Article 16 of Law 7786 sets out a general reporting duty. Any person or company that carries out repeated cash transactions — including transfers to or from abroad, in colones or foreign currency — for amounts equal to or greater than ten thousand US dollars (US$10,000) or its equivalent, must report it to the Financial Intelligence Unit.

For real estate, in particular, this has an obvious practical effect. Almost any property sale clears that threshold. So proper reporting — not just the buyer’s or seller’s good faith — becomes an essential part of a well-structured transaction.

Crypto as a regulated sector: VASPs and the new Art. 15 quater

Virtual asset service providers (VASPs) aren’t governed by a separate law. Instead, Law N.° 10961, published in La Gaceta on June 19, 2026 and effective September 19, 2026, is a direct amendment to Law 7786 that adds a new Article 15 quater. In other words, VASPs join the same group of obligated entities that already includes real estate developers (Art. 15 bis) and notaries (Art. 15 ter). The very same law that defines the crime of money laundering in Article 69 now requires exchanges, custodians, and other crypto intermediaries to register and comply with AML/CFT rules before SUGEF.

That integration has an important practical consequence. Specifically, a VASP properly registered under Article 15 quater can still face a criminal investigation under Article 69 if it processed transactions tied to illicit funds — particularly if it failed to properly document the source of its clients’ money. In short, regulatory registration and criminal liability are two separate layers of the same law, not substitutes for one another.

You can learn more about VASP registration requirements in our Crypto Regulation in Costa Rica guide. At AG Legal, Gonzalo Gutiérrez Acevedo leads the incorporation and registration process for companies planning to operate as a VASP before SUGEF. Getting the structure right from incorporation makes all the compliance work under Article 15 quater easier down the road.

Common risk typologies

Based on the typical patterns documented by AML bodies (FATF/GAFILAT) at the intersection of crypto and real estate, the most frequent red flags generally include:

• Structuring: splitting a transaction into smaller amounts to stay below the reporting threshold.
• Fast conversion of crypto assets into real estate, without a clear trail showing the source of funds or the buyer’s source of wealth.
• Use of shell companies or nominees to hide the true buyer or ultimate beneficial owner of a property.
• Mixed payments (part cash, part crypto, part wire transfer) designed to make the real total transaction amount harder to track.

Penalties for failing to meet obligated-entity duties

Beyond the criminal offense of money laundering itself, failing to meet preventive duties — registration, reporting, due diligence — also carries its own administrative penalty regime under Article 81 of Law 7786. Fines range from 5% to 50% of the unreported transaction amount, or 2 to 100 base salaries (roughly ₡924,400 to ₡46,220,000 for 2026, depending on severity). SUGEF or the National Notary Directorate imposes these fines, depending on the type of obligated entity involved.

Practical recommendations

1. Document the source of funds in any high-value transaction, whether in colones, dollars, or crypto assets. After all, traceability is your best defense if an investigation ever arises.
2. If you’re a real estate developer, verify your registration status with SUGEF under Article 15 bis, and confirm your prevention program is current and properly documented.
3. If you’re a VASP, integrate your AML/CFT compliance under Law 10961 with your internal know-your-customer policies — not as a standalone registration task.
4. Avoid splitting payments to stay under the reporting threshold. Rather than reducing risk, that practice is often itself a red flag that triggers an alert.
5. If you notice an unusual transaction or receive a notice from the FIU, get specialized criminal counsel immediately, before responding or continuing with the operation.

Frequently Asked Questions

What is the penalty for money laundering in Costa Rica?

8 to 20 years in prison in its base form (Art. 69, Law 7786), and 10 to 20 years in its aggravated form, when the assets come from drug trafficking or terrorist financing.

What crimes can the underlying money come from for a money laundering charge?

Any serious crime, defined as one punishable by 4 years in prison or more. In fact, that includes tax fraud, corruption, fraud, and most serious economic crimes — not only drug trafficking.

Do real estate developers have legal AML obligations?

Yes. They’re classified as Designated Non-Financial Businesses and Professions under Article 15 bis of Law 7786. As a result, they must register with SUGEF, appoint a compliance officer, and run a prevention program.

More on Reporting Thresholds and VASPs

Which transactions must be reported to the Financial Intelligence Unit?

Cash transactions, including transfers to or from abroad, for amounts equal to or greater than US$10,000 or its equivalent in colones (Art. 16, Law 7786).

Can a VASP registered under Law 10961 still face a money laundering charge?

Yes. Registering as a VASP under Law 10961 is a regulatory requirement, separate from the criminal offense in Article 69 of Law 7786. In other words, being registered doesn’t exempt a VASP from criminal liability if it processed illicit funds without proper due diligence.

Recommended reading

• Tax Crime in Costa Rica: Thresholds, Penalties, and the Legal Excuse
• Corporate Criminal Liability in Costa Rica: Complete Guide to Law 9699
• Crypto Regulation in Costa Rica: New VASP Law
• Land Disputes in Costa Rica: Protect Your Property From Fraud

This article is for informational purposes only and does not replace individualized legal advice. Laws and their judicial interpretation can change; always consult a lawyer before making decisions based on this content.