Financial Crime World

Tackling Financial Crime and Criminal Activity in Latin America

A Comprehensive Approach to Addressing Complex Challenges

The report from Global Financial Integrity (GFI) highlights the intricate issues faced by Latin America in combating financial crime and criminal activity. Corruption, money laundering, terrorist financing, trafficking in persons/smuggling of migrants, and drug trafficking are among the critical concerns that affect human rights, the environment, national security, and access to healthcare.

Key Challenges and Recommendations

Money Laundering (ML) and Trade-Based Money Laundering (TBML)

  • Creating programs that focus on ML and TBML beyond drug trafficking
  • Establishing strong and transparent beneficial owner (BO) registries
  • Combating systemic corruption
  • Addressing inefficiencies in mutual cooperation and data-sharing

Corruption

  • Improving transparency and oversight of institutions
  • Implementing meritocratic selection of public functionaries
  • Enhancing access to data, leveraging technology, and raising awareness about corruption

Terrorist Financing (TF)

  • Updating TF risk assessments, language, and definitions
  • Strengthening coordination among government agencies and across countries

Trafficking In Persons/Smuggling of Migrants

  • Conducting research on the financial pathways behind TIP and SOM
  • Developing effective strategies to address these issues

Drug Trafficking

  • Supporting countries in drafting and implementing asset seizure legislation
  • Promoting money laundering charges in conjunction with drug trafficking charges
  • Improving intelligence sharing

Conclusion

The report from GFI emphasizes the need for a comprehensive approach that addresses the complexities of financial crime and criminal activity in Latin America. Strengthening national efforts, enhancing donor technical assistance, and promoting transparency in the global financial system are essential steps towards creating a safer and more equitable world.

By working together to tackle these critical challenges, policymakers, practitioners, and stakeholders can help create a brighter future for Latin America and beyond.