Colombia’s Criminal Groups Diversify Money Laundering Techniques Amid Record Cocaine Production
Money Laundering on the Rise in Colombia
A recent report from Colombia’s national anti-money laundering body, the Financial Investigations and Analysis Unit (Unidad de Información y Análisis Financiero - UIAF), has revealed that criminal groups in Colombia are increasingly diversifying their traditional money laundering techniques. According to the report, every year $5 billion is moved through different money laundering schemes, while a total of around $13 billion of illicit money have been generated in Colombia.
The Impact of Record Cocaine Production
The trend is largely driven by record cocaine production in the Andean nation. Traffickers returning to Colombia after serving prison time in the United States have been investing heavily in rural properties since 2016, with property records growing by 300 percent in smaller cities near major coca-growing areas such as Pasto and Popayán.
The Shift from Urban Centers to Rural Areas
The real estate boom has shifted from major urban centers like Medellín and Bogotá to these smaller municipalities. According to El Tiempo, each hectare of coca produces 6.9 kilograms of cocaine, with one kilogram selling for around $1,600 in Colombia.
The Role of Nariño Department
The increased cocaine production in Nariño department, where more than a quarter of the country’s total hectares used for coca cultivation are located, has led to a surge in illicit earnings. This has contributed to the diversification of money laundering techniques used by criminal groups.
The Fragmentation of Colombia’s Criminal Landscape
The departure of the Revolutionary Armed Forces of Colombia (FARC) and the increasingly fragmented criminal landscape have likely led to the shift in money laundering strategies used by traffickers. According to Adam Isacson, a senior associate at the Washington Office on Latin America think tank:
“The Mexicans are full of cash and paying quickly for cocaine, so these more regional groups in Colombia are likely looking for places close to their centers of operation to put their money.”
Conclusion
As Colombia’s criminal landscape continues to take shape, it appears that traffickers are adapting their money laundering strategies to best suit the current dynamics of the cocaine trade. The diversification of money laundering techniques is a concerning trend that highlights the evolving nature of organized crime in Colombia.
Key Statistics:
- $5 billion: Amount moved through different money laundering schemes every year
- $13 billion: Total amount of illicit money generated in Colombia
- 300 percent: Growth rate of property records in smaller cities near major coca-growing areas since 2016
- 6.9 kilograms: Cocaine production per hectare of coca cultivation
- $1,600: Price of one kilogram of cocaine in Colombia