Financial Crime Trends in Argentina: A New President, a New Challenge
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Argentina’s newly elected president, Javier Milei, has promised to bring radical change to the country, but he will face significant challenges in tackling financial crime trends that have plagued the nation for years. As he takes office on December 10, Milei will inherit a country with triple-digit inflation, extreme political polarization, and rising public debt, as well as entrenched criminal structures.
The Challenge of Organized Crime
One of the most pressing organized crime problems facing Argentina is drug trafficking. The country’s porous borders with Bolivia and Paraguay make it an attractive territory for criminal groups involved in transnational drug trafficking.
- Cocaine and marijuana are smuggled into the country through various routes, including a major highway that passes through the provinces of Salta and Jujuy.
- These drugs are then shipped to Europe and Australia.
Experts suggest focusing on departure points rather than trying to stop the drugs before they enter the country. Controlling Argentina’s 20 international ports would be more effective than patrolling its long and difficult-to-patrol borders.
Corruption: A Major Obstacle
Corruption is another major obstacle in the fight against organized crime. Public officials at various levels of government have been accused of taking bribes, allowing criminal groups to:
- Bypass border controls
- Manipulate financial transactions
- Launder their profits
The Gordos marijuana trafficking group in Corrientes and the Castedos cocaine trafficking group in Bolivia are just two examples of how corruption has enabled drug traffickers to operate with impunity.
Money Laundering: A Significant Problem
Money laundering is also a significant problem in Argentina. Criminals convert their illegal profits into usable cash through various methods, including:
- Real estate transactions
- Shell companies
- Cash-intensive businesses
The lack of a centralized database for money laundering investigations makes it difficult to track cases that span jurisdictions, while the informal economy and reliance on cash payments make it hard to monitor financial transactions.
Addressing the Challenges
To address these challenges, Milei has promised to:
- Increase Argentina’s anti-money laundering capacity
- Replicate Chile’s privatization policies to reduce corruption
However, his ability to implement reforms will depend on his coalition-building efforts in Congress. The exact coalition he will form with allies of ex-President Mauricio Marci and Patricia Bullrich remains to be seen.
A Critical Test Ahead
In the coming months, Milei will face a critical test: can he deliver on his promises to tackle financial crime trends in Argentina? The fate of the country’s economy and its people hangs in the balance.