Ecuador’s Drug Trafficking Crisis: US Imposes Financial Sanctions on Los Lobos Organization

The United States has imposed financial sanctions on the Los Lobos Drug Trafficking Organization (Los Lobos) and its leader Wilmer Geovanny Chavarria Barre in an effort to combat Ecuador’s growing drug trafficking problem.

Background

Los Lobos, which has thousands of members, has emerged as Ecuador’s largest drug trafficking organization and is responsible for significant violence in the country. The group’s rise to prominence began after the 2020 assassination of a rival gang leader left a power vacuum that Los Lobos filled by coordinating attacks against fragmented leadership.

Sanctions

The US Treasury Department’s Office of Foreign Assets Control (OFAC) has designated Los Lobos pursuant to Executive Order 14059 for its involvement in illegal drug trafficking and activities that pose a significant risk to international security. The sanctions prohibit all US persons from conducting transactions with Los Lobos or its leaders, and require any entities owned 50% or more by blocked individuals to be blocked as well.

Implications

The sanctions are expected to have significant implications for Los Lobos’ operations, making it more difficult for the organization to access financial resources and conduct business with US persons or entities. The move is seen as a major blow to the group’s ability to operate in Ecuador and beyond.

Ecuadorian Government Response

The Ecuadorian government has also taken steps to combat the crisis, declaring a state of emergency in seven provinces and designating 22 gangs as terrorist groups. President Daniel Noboa’s administration has proposed measures to allow the deployment of soldiers alongside police and permit law enforcement to use seized weapons.

US Support for Ecuador

The US Treasury Department’s Under Secretary for Terrorism and Financial Intelligence, Brian E. Nelson, said that the sanctions demonstrate support for Ecuador in its efforts to combat drug trafficking and counter the threat of violence. “Drug trafficking groups with ties to powerful drug cartels threaten the lives and livelihoods of communities in Ecuador and throughout South and Central America,” Nelson stated.

Global Impact

The move is part of a broader effort to disrupt the activities of criminal organizations linked to Mexican drug cartels, which have been involved in drug trafficking, murder-for-hire, and illegal gold mining. The US Department of State has offered an award of up to $5 million for information on those responsible for Villavicencio’s murder.

The sanctions are a major step forward in the fight against drug trafficking and will undoubtedly disrupt Los Lobos’ operations.