HomeNewsBriefGuatemala Arrests a Positive Stride Against Money Laundering
BRIEF

Guatemala Arrests a Positive Stride Against Money Laundering

ELITES AND CRIME / 4 DEC 2013 BY JAMES BARGENT EN

Authorities in Guatemala have arrested 21 people in raids targeting a money laundering ring linked to Mexico's Sinaloa Cartel, the latest sign that the country's culture of impunity is slowly eroding.

Police and prosecutors, with logistical support from the military, made the arrests during a series of 35 raids in Guatemala City, San Marcos, Huehuetenango and Quetzaltenango, reported Prensa Libre.

The group stands accused of laundering some $46 million, which Attorney General Claudia Paz y Paz said investigators believed were drug profits linked to the Sinaloa Cartel.

The ring operated using a front company legally established as a fruit and vegetable exporter. They laundered money predominantly by paying a partner company in Mexico for non-existent shipments of produce. Members of the company would then travel to Mexico and remove the money from the bank accounts where they had deposited it. Another method used was to pay non-existent suppliers for produce.

The network predominantly transferred money to Mexico, although small quantities were also sent to China and the United States.

guateml

InSight Crime Analysis

As in most of the region, Guatemala has a poor record on combatting money laundering. In part, this is because of legal restrictions on investigations. The Special Audit Office and the Superintendency of Banks are only authorized to monitor suspicious activity occurring within the country's banking system, meaning that illicit cash transfers made outside of private and public banking fly under the radar.

SEE ALSO: Coverage of Money Laundering

Investigations have also been hindered by a culture of impunity that runs right to the top of Guatemala's social, business and political institutions. The clearest example of this was former President Alfonso Portillo, who was acquitted of money laundering and other charges despite damning evidence in 2011. He was later extradited to the United States.

However, there have been various signs that this culture is beginning to change, largely thanks to the tireless efforts of Paz y Paz and her team, and legal reforms such as the 2012 Law Against Illicit Enrichment.

This most recent case is yet another positive sign that Guatemala is moving in the right direction. However, the true test will not be the arrests but whether they can also secure convictions in the case.

share icon icon icon

Was this content helpful?

We want to sustain Latin America’s largest organized crime database, but in order to do so, we need resources.

DONATE

What are your thoughts? Click here to send InSight Crime your comments.

We encourage readers to copy and distribute our work for non-commercial purposes, with attribution to InSight Crime in the byline and links to the original at both the top and bottom of the article. Check the Creative Commons website for more details of how to share our work, and please send us an email if you use an article.

Was this content helpful?

We want to sustain Latin America’s largest organized crime database, but in order to do so, we need resources.

DONATE

Related Content

EL KOKI / 25 JAN 2022

Venezuela’s Peace Zones were arguably some of the strongest evidence showcasing the odd, fluctuating relationship between organized crime and the…

CARIBBEAN / 10 MAY 2021

High-ranking officials in the Dominican Republic are accused of siphoning millions of dollars in state funds through a religious non-profit,…

BOLIVIA / 4 FEB 2022

The US indictment of Bolivia's former anti-narcotics chief on drug and weapons charges means he could possibly be extradited to…

About InSight Crime

THE ORGANIZATION

Venezuela Coverage Continues to be Highlighted

3 MAR 2023

This week, InSight Crime co-director Jeremy McDermott was the featured guest on the Americas Quarterly podcast, where he provided an expert overview of the changing dynamics…

THE ORGANIZATION

Venezuela's Organized Crime Top 10 Attracts Attention

24 FEB 2023

Last week, InSight Crime published its ranking of Venezuela’s ten organized crime groups to accompany the launch of the Venezuela Organized Crime Observatory. Read…

THE ORGANIZATION

InSight Crime on El País Podcast

10 FEB 2023

This week, InSight Crime co-founder, Jeremy McDermott, was among experts featured in an El País podcast on the progress of Colombia’s nascent peace process.

THE ORGANIZATION

InSight Crime Interviewed by Associated Press

3 FEB 2023

This week, InSight Crime’s Co-director Jeremy McDermott was interviewed by the Associated Press on developments in Haiti as the country continues its prolonged collapse. McDermott’s words were republished around the world,…

THE ORGANIZATION

Escaping Barrio 18

27 JAN 2023

Last week, InSight Crime published an investigation charting the story of Desafío, a 28-year-old Barrio 18 gang member who is desperate to escape gang life. But there’s one problem: he’s…