Answer
Uruguay is called the "Switzerland of Latin America" primarily because of its banking system, its role as a financial center, and its associations with democracy and neutrality. This is a figurative comparison, not a claim that the country is entirely similar to Switzerland.
In practical financial terms, this reputation matters to people moving there: banking is important in Uruguay, and opening an account, documenting the origin of funds, and making international transfers require careful preparation.
At the same time, the label does not eliminate practical difficulties. The country is expensive, banks scrutinize documents and client profiles, and terms of service vary by institution. Therefore, you should focus not on the label but on actual requirements and costs.