Eradicating Financial Crime through Advanced Data Analytics: El Salvador’s Journey
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A Nation Transformed: From High Homicide Rates to Reduced Violence
El Salvador has made significant strides in reducing violent crime and homicides since 2016, when it recorded over 5,000 murders. The country’s efforts have paid off, with El Salvador now ranking as the Latin American nation with the lowest murder rate.
The Economic Impact of Violence: A Substantial Cost
The economic cost of violence in El Salvador has been substantial, with the country ranked as the Central American nation with the highest cost of violence as a share of its Gross Domestic Product (GDP). In total, the economic cost was around 15 percent of the total monetary value of all final goods and services produced within the country. This translates to almost $2,000 per inhabitant, making El Salvador one of the countries in the region most affected by violence.
Using Data Analytics to Combat Financial Crime
In an effort to combat financial crime, El Salvador’s government has implemented advanced data analytics tools to track and prevent money laundering and other illicit activities. These efforts have been instrumental in identifying and disrupting gang operations, which have historically relied on these tactics to fund their activities.
The Role of Gangs in El Salvador
Two rival gangs, La Mara Salvatrucha (MS-13) and Mara Barrio-18, have dominated El Salvador’s underworld for decades. These organizations have been responsible for:
- Extortion
- Drug trafficking
- Human trafficking
- Kidnapping
- Money laundering
Their use of tattoos to denote rank and membership has also made them easier to track.
Incarceration Rates and Maximum-Security Prisons
The war against crime in El Salvador has resulted in the country having one of the largest prison populations per 100,000 inhabitants. In response, President Bukele’s government built a maximum-security prison, the Terrorism Confinement Center (CECOT), which can hold up to 40,000 inmates. Despite this, prison overcrowding remains a significant issue, with an occupancy rate of 237 percent in 2023.
Building a Safer Future through Data Analytics
As El Salvador continues to grapple with the legacy of violence and crime, advanced data analytics will play an increasingly important role in preventing financial crimes and disrupting gang operations. By leveraging technology and intelligence, the country can build a safer, more secure future for its citizens.