First of all, it generally enjoys higher income levels than the Latin American average, although when GDP per capita or purchasing power parity is taken into account, it is on par with Chile and Argentina[2] In addition, Uruguay is a small, homogenous country where 40% of the population reside in the capital Montevideo.
Combatting corruption is typically easier in large urban centers rather than federal or continental democracies.
Furthermore, Uruguay has successfully established a vibrant democratic system which has ensured strong institutional frameworks, though some issues with campaign financing make political parties vulnerable to corrupt influences.
[2] Social inclusionary policies such as introducing pensions which reach 87% of the people as well as a lower level of unemployment also have played a significant role in cutting down corruption.
For example, Spanish authorities investigated Argentine football superstar Lionel Messi for allegedly avoiding £4.2 million in taxes by taking opportunity of Uruguayan regulations.
The law for control and prevention of money laundering stipulates prison sentences of up to ten years for such crimes.