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Mexico Grapples with Spiraling Financial Crime Trends

Mexico, a country plagued by kidnappings, disappearances, and other forms of criminal violence, has struggled to contain the spread of financial crime. With over 30,000 people killed each year since 2018, the nation’s crisis has driven migrants to the US border in search of safety and security.

The Roots of Mexico’s Financial Crime Crisis

The roots of Mexico’s financial crime crisis can be traced back to the 1980s, when criminal groups and drug traffickers began to organize and establish networks for production and distribution. However, as production increased, so did violence across the country, with rival factions fighting for control and access to markets.

Past Attempts to Address the Crisis

In 2006, former President Felipe Calderon launched a war on criminal organizations using military force, but this approach was later revised by his successor Enrique Peña Nieto in 2012. Despite initial gains, the violence persisted, driven by corruption and crime-related activities.

The Current Administration’s Approach

The current administration, led by President Andrés Manuel López Obrador (AMLO), has promised to tackle cartels with a “hugs, not bullets” approach, focusing on poverty alleviation programs, legalization of marijuana, and new sentencing guidelines for drug traffickers. However, the strategy has failed to curb violence, with over 30,000 crime-related deaths reported annually.

Recent Developments

Recent developments suggest that AMLO’s tactics have only exacerbated the problem. The government has expanded the military’s role in policing, despite criticism from human rights groups that this approach has led to arbitrary detention, rape, and extrajudicial killings. The country’s Congress recently passed a reform allowing the military to carry out domestic law enforcement until 2028.

The Consequences of Inaction

As the situation continues to deteriorate, cartels have consolidated their control over large swaths of territory, battling each other with heavy weaponry and drones. Kidnappings, killings, and attacks on journalists remain common, and the state has struggled to deliver justice for victims of past crimes.

The Flow of Drugs into the US

The flow of drugs from Mexican cartels into the US has also fueled a drug overdose epidemic in the country, with the Sinaloa and Jalisco cartels responsible for the vast majority of drug trafficking. Fentanyl, a highly addictive and deadly drug, is increasingly being smuggled across the border by these cartels.

The Way Forward

As Mexico’s crisis deepens, its government faces mounting pressure to address the root causes of financial crime and restore stability to the country.