Financial Crimes in Emerging Markets: Guadeloupe Fights Back Against Illicit Proceeds
A Region Plagued by Corruption and Financial Crimes
In a region where corruption, money laundering, and other financial crimes are rampant, the island of Guadeloupe is taking steps to strengthen its efforts against illicit proceeds. According to a recent report, corruption remains the most prevalent financial crime affecting the Latin America and Caribbean (LAC) region, followed closely by money laundering, trade-based money laundering, and terrorism financing.
Corruption as the Largest Source of Illicit Proceeds
The report, which analyzed 250 expert interviews conducted in LAC, found that corruption is also the largest source of illicit proceeds in the region. Experts pointed to financial institutions, real estate, bulk-cash smuggling, and trade-based money laundering as primary channels used to move illicit proceeds within LAC.
Incomplete Implementation and Lack of Political Will
Despite recent improvements to AML/CFT laws in many countries, implementation remains incomplete, and political will varies. The average score for the region’s efforts to combat financial crimes was a dismal 2.47 out of 5, reflecting experts’ views that current efforts are insufficient.
Recommendations for Guadeloupe and LAC
The report makes several recommendations specific to Guadeloupe and other countries in LAC:
- US Technical Assistance Programs Must Account for Systemic Challenges: US technical assistance programs must address the root causes of financial crimes, rather than just providing training.
- Establish Specialized Courts to Combat Financial Crimes: Guadeloupe and other countries in LAC should establish specialized courts dedicated solely to financial crime cases, staffed with prosecutors, judges, and attorneys trained in relevant subject matter.
- Long-term Staff Exchange Programs Key to Effective Partnerships: Long-term staff exchange programs within the LAC region and between the region and the US would ensure effective knowledge transfer and efficient partnerships, ultimately strengthening efforts against financial crimes.
- FATF Mutual Evaluations Must Consider Weaponization of AML/CFT Laws: FATF mutual evaluations should take into account whether countries “weaponize” AML/CFT and anti-corruption laws against political opponents, non-profits, and other vulnerable groups.
Conclusion
Guadeloupe’s efforts to combat financial crimes are crucial in a region plagued by corruption and illicit proceeds. By implementing recommendations from this report, the island can strengthen its AML/CFT framework, prevent money laundering, and disrupt corrupt networks.