Financial Crime Trends Plague Ecuador as Country Becomes Third Most Crime-Ridden in Latin America

Ecuador has become a hotspot for organized crime, with the country now ranking third in Latin America’s crime-ridden nations. Over the past three years, the nation has been plagued by terrorist attacks, gruesome displays of violence, extortion, kidnappings, and assaults on public institutions carried out by powerful drug traffickers.

The Role of Government Complicity

However, these criminal activities require more than just weapons; they also need a passive government that fails to hold perpetrators accountable for crimes. A recent report reveals that law enforcement and military personnel have been apprehended with illicit arms and narcotics, while weapons and ill-gotten funds have been discovered in the offices of prison officials.

The Lasso Administration’s Failed Report

The Lasso administration had planned to release a report on Ecuador’s national strategy against organized crime two days before President Guillermo Lasso’s departure from office. However, the press conference was canceled without explanation, and the report went unnoticed amid the government transition.

Experts’ Concerns for a Comprehensive Strategy

Experts say that developing a comprehensive strategy to combat crime is essential for the country’s future. The aim would be to involve the military in maintaining law and order on the streets. A recent survey of 159 officials from 20 public institutions revealed that organized crime groups have infiltrated and co-opted the security and justice systems, amassing significant economic power through money laundering and illicit enrichment.

The Extent of Organized Crime Groups

The report also states that there are 11 distinct criminal groups operating in 21 out of Ecuador’s 24 provinces. These gangs include criminals from Ecuador, Colombia, Venezuela, Peru, and Mexico, and their main focus is to control drug trafficking routes. To achieve this, they have established logistics centers throughout the country for the production, transportation, and storage of illegal narcotics and chemical precursors.

The Consequences of Drug Wars

As of October, drug wars have led to 6,348 murders in Ecuador, with a rate of 34.8 homicides per 100,000 residents. Security analyst Mario Pazmiño says that one strategy is to disrupt the primary source of financing for organized crime by preventing the entry of cocaine through the northern and southern borders.

Expanding Operations

However, drug traffickers have expanded their operations into firearms and ammunition trafficking, illegal mining, and human trafficking. At the local level, the gangs thrive on extortion, kidnappings, and selling stolen vehicles and cell phones.

A Culture of Complicity

Pazmiño says that there is a clear criminal complicity going on in Ecuador, with the government failing to understand the extent of the problem. “It’s a criminal holding company that’s been ignored by a government that doesn’t understand it,” he said.

International Support and Recommendations

International organizations, including the United Nations Office on Drugs and Crime, provided guidance and support for the report. The majority of survey participants agreed that organized crime groups have the capacity to infiltrate and co-opt the country’s security and justice systems.

The report also highlights the need for Ecuador’s Financial Analysis Unit to be reinforced in order to combat money laundering. President Daniel Noboa reacted by saying that drug traffickers have 500 creative ways of laundering money, making it necessary to strengthen the unit. However, a recent GAFILAT evaluation found that the unit was lacking in its efforts.

Conclusion

Ecuador’s struggle against organized crime is ongoing, and experts say that developing a comprehensive strategy to combat crime is essential for the country’s future. The government must take action to address the problem and ensure that perpetrators are held accountable for their crimes.