Honduras’ Anti-Money Laundering Regulations Under Fire: Dozens of Suspects Freed Despite Alleged Ties to Organized Crime
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Despite a major overhaul of its anti-money laundering law last year, dozens of individuals with alleged ties to organized crime have been released from custody in Honduras. This move has sparked speculation that the reform is aimed at protecting those in power.
The Investigation
An investigation by El Heraldo, published on October 25, revealed that at least 45 people suspected of links to organized crime have had their cases dropped following a controversial reform to Honduras’ Special Law Against Asset Laundering. The reform, passed last November, has made it more challenging for prosecutors to charge individuals with money laundering.
Cases Highlighted
The investigation highlights the cases of several high-profile suspects, including:
- Former congressman Seth Paisano Wood and his brother Roberto, who were suspected of running a drug trafficking network in the eastern department of Gracias a Dios. Despite being arrested in October 2019, they were never formally charged with drug trafficking but were convicted of money laundering. They were released from prison less than two weeks after the reform passed.
- Five others who were part of Operation Arcano, which uncovered money laundering schemes involving well-known Honduran drug traffickers, including the Valle Valle group.
Criticism
The reform has been met with stern criticism from authorities and experts. Luis Javier Santos, chief prosecutor for Honduras’ Special Prosecutor’s Unit Against Corruption Networks (UFERCO), stated that it has effectively given criminals immunity from prosecution. “Entire gangs have been let out of prison because of it,” Santos said.
Concerns Over Impunity
The move is seen as part of a larger pattern of moves aimed at protecting those in power. The Honduran congress passed a controversial law in 2019 that was criticized for shielding politicians from investigation into embezzlement of public funds, while the government faced criticism last February over plans to grant amnesty to officials who served under former President Manuel Zelaya.
Efforts to Overturn the Reform
The Attorney General’s Office has attempted to overturn the reform, deeming it unconstitutional and condemning it as a “guarantee of impunity granted by the legislature to organized and white-collar crime.” However, despite these efforts, the reform remains in place, raising concerns over its impact on Honduras’ fight against corruption.
Conclusion
The release of dozens of suspects with alleged ties to organized crime has sparked widespread concern over the effectiveness of Honduras’ anti-money laundering regulations. The controversy surrounding the reform highlights the need for urgent action to ensure that those responsible for financial crimes are held accountable, and that the country’s efforts to combat corruption are not undermined by political manipulation.