HomeNewsBriefPeru Breaks Up Shining Path 'Money Laundering Ring'
BRIEF

Peru Breaks Up Shining Path 'Money Laundering Ring'

MONEY LAUNDERING / 30 APR 2012 BY HANNAH STONE EN

Peruvian authorities have charged 19 members of the extended family of the Quispe Palomino brothers, who head the Shining Path rebel group, with laundering drug profits for the guerrillas.

Ten alleged members of the ring were arrested in the region of Ica, southern Peru, three weeks ago. They belonged to three families, all related to the Quispe Palominos; the Gutierrez Mantaris, Muñoz Palominos and the Hinostroza Quispes. The authorities seized some $100 million worth of goods in the operation.

The ring allegedly laundered drug profits for the rebel group, the main faction of which is based in the nearby Apurimac and Ene River Valley (VRAE).  Money was washed through businesses including fertilizer stores, brick factories and poultry producers, reported La Republica.

Captured Shining Path guerrillas reportedly tipped off the authorities to the existence of the ring, telling them that the accused would visit rebel camps to hand over weapons, medicine, food and money.

Among those charged, in absentia, were Shining Path leader Victor Quispe Palomino, "Comrade Jose," and his brother Jorge Quispe Palomino, alias "Raul."

InSight Crime Analysis

The operation against their money laundering operations is an important blow against the rebel group. The VRAE branch are thought to fund themselves in large part by taxing coca growers and protecting cocaine production facilities and shipments. Their network for laundering these profits, and turning them into food, medicine and so on, will be of crucial importance to the guerrillas and their survival.

After capturing Florindo Eleuterio Flores Hala, alias "Comrade Artemio," who led the other faction of the rebel group, based further north in the Huallaga region, it seems that the government is now focusing its attention on the VRAE group. This could prove more difficult, as the Quispe Palominos' troops are thought to be stronger militarily and to draw bigger profits from from drug trafficking than their rivals. They have launched various deadly attacks on the security forces in recent years, and kidnapped 36 gas workers earlier this month.

The group's ability to operate in the valley with relative impunity could be threatened as the security forces step up operations against this last remaining stronghold of the Shining Path. In an interview given shortly before his capture, Artemio said that the VRAE group was stronger than his faction because the government had prioritized operations against his group. "They have decided to first take Huallaga, destroy it, and then the VRAE ... That's why they are as they are, in some ways they have been left alone, militarily speaking."

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

BRAZIL / 4 SEP 2019

Brazilian criminal gangs were able to use official currency exchanges in Paraguay to launder over $1.5 billion in drug money,…

COLOMBIA / 11 AUG 2011

Police have arrested a Colombian woman accused of laundering money for the Sinaloa Cartel, shedding light how the powerful Mexican…

EXTORTION / 21 JUL 2014

Peru is reportedly home to at least 60 criminal groups which extort the construction industry under the guise of trade…

About InSight Crime

THE ORGANIZATION

Venezuela's Cocaine Revolution Met With Uproar

6 MAY 2022

On May 4, InSight Crime launched its latest investigation, Venezuela’s Cocaine Revolution¸ accompanied by a virtual panel on its findings. The takeaways from this three-year effort, including the fact that Venezuela…

THE ORGANIZATION

Venezuela Drug Trafficking Investigation and InDepth Gender Coverage

29 APR 2022

On May 4, InSight Crime will be publishing The Cocaine Revolution in Venezuela, a groundbreaking investigation into how the Venezuelan government regulates the cocaine trade in the country. An accompanying event,…

THE ORGANIZATION

InDepth Coverage of Juan Orlando Hernández

22 APR 2022

Ever since Juan Orlando Hernández was elected president of Honduras in 2014, InSight Crime has provided coverage of every twist and turn during his rollercoaster time in office, amid growing…

THE ORGANIZATION

Venezuela's Cocaine Revolution

15 APR 2022

On May 4th, InSight Crime will publish a groundbreaking investigation on drug trafficking in Venezuela. A product of three years of field research across the country, the study uncovers cocaine production in…

LA ORGANIZACIÓN

Widespread Coverage of InSight Crime MS13 Investigation

8 APR 2022

In a joint investigation with La Prensa Gráfica, InSight Crime recently revealed that four of the MS13’s foremost leaders had been quietly released from…