Vulnerable Groups Face Uncertain Future Under Argentina’s New President

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Argentina has elected a new president who has promised radical change. However, experts warn that extreme policies could exacerbate existing problems, including organized crime and corruption.

Organized Crime and Corruption: A Persistent Threat

Among the pressing issues facing incoming President Javier Milei is the country’s vulnerability to financial crimes. Argentina neighbors major cocaine-producing countries and has multiple international ports, making it an attractive territory for transnational drug trafficking groups.

The Northern Provinces: A Hub for Cocaine Trafficking

• The northern provinces of Salta and Jujuy share a porous border with Bolivia, where the cocaine business is on the rise.
• A major highway passes through these provinces, connecting Bolivia to Argentina’s biggest cities and ports.

Marijuana Trafficking in the Eastern Provinces

• Farther east, the provinces of Corrientes, Misiones, and Formosa are important corridors for trafficking potent marijuana grown in Paraguay.

The Role of Corruption in Enabling Organized Crime

Corruption is another major issue that allows organized crime groups to bypass border inspections and avoid prosecution. Argentina has seen corruption cases at the highest levels of government, including former President Cristina Fernandez de Kirchner, who was indicted on charges of money laundering in 2017.

Exploiting Weaknesses in the Economy

• Local groups have been able to exploit weaknesses in the country’s economy to launder profits from numerous criminal activities, including drug trafficking and human trafficking.
• International groups, such as the Jalisco Cartel New Generation (CJNG), and Pablo Escobar’s family have also laundered money in Argentina.

The Government’s Plan to Strengthen Anti-Money Laundering Laws

The government is considering reforms to strengthen Law 25.246, which established the Financial Information Unit (Unidad de Información Financiera - UIF) and built a system to investigate suspicious operations.

Challenges Ahead

• President Milei will need the political will to actually prosecute major cases if the country is to significantly interrupt organized crime’s financial dealings.
• Major reforms will be challenging, as Milei’s Liberty Advances party only holds a fraction of the seats necessary for a majority in both houses of Argentina’s legislature.

Conclusion

Vulnerable groups to financial crimes face an uncertain future under President Milei’s leadership. While he has promised radical change, experts warn that extreme policies could exacerbate existing problems, including organized crime and corruption. The country’s vulnerability to financial crimes will depend on whether President Milei is able to implement effective reforms and prosecute major cases of money laundering and corruption.