Financial Crime World

Title: Uruguay’s Money Laundering Vulnerability: Expert Concerns over Lax Regulations and Drug Trafficking Links

Increasing Money Laundering Cases Linked to Drug Trafficking in Uruguay

According to a new government report from the National Secretary Against Money Laundering and Terrorism Financing (SENACLAFT), Uruguay’s vulnerability to financial crimes has grown with nearly doubled money laundering cases linked to drug trafficking since 2018.

  • Number of investigations into money laundering linked to drug trafficking rose from 1,597 in 2018 to 3,021 in 2022.

Key Areas of Concern

The report identified areas of concern such as:

  1. Financial intelligence
  2. International cooperation
  3. Preventative systems
  4. National cooperation
  5. Investigations and convictions

Alejandro Aparicio Montesdeoca, a financial consultant for SENACLAFT, stated:

  • Uruguay’s weakness in combating financial crimes has been an issue for years.
  • The assessment found insufficient resources towards preventing, detecting, and prosecuting financial crimes.

Uruguay’s Susceptibility to Money Laundering

In Punta del Este, Uruguay, money laundering operations by international criminal organizations and locals have been a concern:

  • Los Cuinis, involved in financing for the Jalisco Cartel New Generation (CJNG)
  • Gastón Murialdo and Martín Mutio, involved in massive cocaine shipments and laundered profits

Uruguayan experts and observers expressed concerns over:

  • Fewer personnel dedicated to investigating financial crimes compared to neighboring countries.
  • Lack of expertise.
  • Legal loopholes, such as the 2020 law increasing cash payment limits to $100,000.

Nicolás Centurión’s Comment

Crime observer and analyst Nicolás Centurión from the Latin American Center for Strategic Analysis (CLAE) noted:

  • The new law allowing $100,000 cash transactions without questioning is potentially enabling money laundering schemes.

Suggestions for Combating Money Laundering

Montesdeoca encouraged Uruguay to follow the example of countries like Paraguay:

  • Demonstrated success in combating money laundering with the right resources and strategies.

Uruguay’s Steps Forward

Despite concerns, Uruguay has taken some steps forward:

  • Creation of a prosecutor’s office dedicated to money laundering in early 2023.
  • Discussions to address concerns regarding the 2020 cash payment law.

Skepticism Remains

Uruguayans and observers remain skeptical of the country’s lax banking regulations, which may continue to attract criminal organizations seeking to obscure their illicit activities.