Financial Crime in Latin America and the Caribbean: A Comprehensive Report

Introduction

The Latin America and the Caribbean (LAC) region faces significant challenges related to financial crime, including money laundering, corruption, terrorist financing, trafficking in persons/smuggling of migrants, and drug trafficking. This report provides a comprehensive overview of these issues and highlights key areas of concern.

Key Areas of Concern

Money Laundering/Trade-Based Money Laundering (TBML)

Programs targeting money laundering beyond drug trafficking: The report emphasizes the need to create programs that target money laundering beyond drug trafficking.
Strong and transparent beneficial ownership registries: Creating strong and transparent beneficial ownership registries is essential for combating money laundering.
Mutual cooperation and data-sharing: Addressing inefficiencies in mutual cooperation and data-sharing between countries and institutions is crucial for effective anti-money laundering efforts.
Awareness and knowledge of TBML: Improving awareness and knowledge of trade-based money laundering is necessary to prevent its occurrence.

Corruption

Transparency: Transparency is essential for preventing corruption, and the report stresses the importance of transparency in public institutions.
Oversight of institutions: Strong oversight of institutions is necessary to prevent corruption and ensure accountability.
Meritocratic selection of public functionaries: The meritocratic selection of public functionaries is crucial for preventing corruption and ensuring that those in positions of power are qualified and honest.
Data access and technology: Using data and technology can increase general awareness of corruption and help prevent its occurrence.

Terrorist Financing

Updating risk assessments, language, and definitions: Updating risk assessments, language, and definitions related to terrorist financing is necessary to ensure that anti-terrorism efforts are effective.
Separating counter-terrorism from stifling dissent: Separating real counter-terrorism efforts from those aimed at stifling dissent is crucial for preventing human rights abuses.
Coordination among government agencies and countries: Strengthening coordination among government agencies and across countries is necessary to prevent terrorist financing.

Trafficking In Persons/Smuggling of Migrants

Research on financial pathways: Conducting research on the financial pathways behind trafficking in persons (TIP) and smuggling of migrants (SOM) is essential for understanding these crimes.
Recognizing restrictive border policies: Recognizing that restrictive border policies contribute to SOM is necessary to prevent this crime.
Assessing efficacy of TIP public awareness campaigns: Assessing the efficacy of TIP public awareness campaigns is crucial for ensuring that they are effective in preventing this crime.

Drug Trafficking

Asset seizure legislation: Drafting and implementing asset seizure legislation can help to prevent drug trafficking.
Money laundering charges: Promoting the application of money laundering charges in conjunction with drug trafficking charges is necessary to ensure that those involved in drug trafficking are held accountable.
Capacity building for judges and prosecutors: Building capacity for judges and prosecutors to handle cases related to drug trafficking is crucial for ensuring that these crimes are punished effectively.

Conclusion

The solutions to tackle financial crime are not simple and require a comprehensive approach addressing the complexities of inequality, poverty, violence, weak institutions, corruption, and declining economic growth. Strengthening national efforts and enhancing the effectiveness of donor technical assistance are essential for addressing these issues effectively.

Recommendations

Strengthen national efforts: National governments should strengthen their efforts to combat financial crime.
Enhance donor technical assistance: Donors should enhance the effectiveness of their technical assistance to support national efforts to combat financial crime.

By implementing these recommendations, the LAC region can make significant progress in combating financial crime and promoting economic growth and stability.