Honduras Struggles to Combat Money Laundering Despite New President’s Promises
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A Plague on the Country: Corruption, Organized Crime, and Money Laundering in Honduras
Honduras has long been plagued by corruption, organized crime, and money laundering. The country’s institutions have struggled to combat these issues, despite efforts to tackle them.
The Extent of the Problem
- Between $351 million and $878 million is laundered in Honduras every year.
- A significant portion of this money comes from drug trafficking gangs that operate with impunity.
- Corruption costs the economy around $2 billion annually, or 12.5% of GDP.
Weak Institutions and Lack of Political Will Hamper Efforts to Combat Money Laundering
The country’s prosecution and investigation efforts are seen as inadequate, despite having stronger detection and prevention measures in place.
Key Challenges
- Honduras’ lack of political will to deal with money laundering.
- Weak institutions that hinder effective enforcement of laws aimed at combating money laundering.
New President’s Election Spurs Hope for Change
Xiomara Castro has vowed to tackle corruption and money laundering head-on. However, it remains to be seen whether she will be able to make significant progress in addressing these issues.
Challenges Ahead
- Effective implementation of anti-money laundering laws.
- Addressing entrenched corruption within institutions.
Businesses Must Remain Vigilant in the Fight Against Money Laundering
Businesses operating in Honduras must conduct thorough risk assessments, implement robust due diligence procedures, and report suspicious activity to the relevant authorities.
Resources for Businesses
VinciWorks has created a guide designed to support businesses that operate in Latin America and the Caribbean. The guide provides an overview of key AML challenges and issues, as well as a country-by-country assessment of AML risks and laws. Download the guide for free here.