GAFILAT: LATIN AMERICA – SECOND UPDATE TO THE MONEY LAUNDERING REGIONAL THREAT REPORT

FATF-style regional body GAFILAT, which covers Latin America, has released (in English and Spanish) this report, 2 years after the previous one,  to reflect the current threats so that countries can take the corresponding preventive actions that allow them to implement policies, mechanisms and tools to deal in a timely and effective manner with this crime.

The most commonly detected typologies as mechanisms for laundering the proceeds of crime are, in the first place, the use of front men, in the second place, the creation and use of legal persons and arrangements and, in the third place, the use of money or securities transfer services.

The banking sector remains the most vulnerable sector for money laundering in the region, followed by the public institutions sector, the automotive sector, and the real estate sector.  From the analysis of the convictions presented, it emerges that the main predicate offences for ML convictions are the illicit cross-border transportation of money, the illicit trafficking in narcotics and psychotropic substances, participation in an organised criminal group, followed by corruption and bribery and swindling.

The main threats in the region are identified as Illegal trafficking in narcotics and psychotropic substances, illicit cross-border transportation of money, corruption and bribery, participation in organised criminal groups, and tax crimes (direct and indirect taxes), swindling and smuggling (including taxes and customs fees). Smuggling of migrants and human beings, especially trafficking in persons, and environmental crimes are identified as emerging threats.  In relation to environmental crimes, 7 countries in the region mentioned the criminal exploitation of natural resources as a ML threat.

https://www.gafilat.org/index.php/es/biblioteca-virtual/gafilat/documentos-de-interes-17/estudios-estrategicos-17/3860-second-update-to-the-ml-reginoal-threat-report-gafilat-1/file

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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