The Danger of Drug Money Laundering

In the small Central American economies, the effects of the intrusion of drug money would be devastating.

Tuesday, April 28, 2009

Although there are increasing rumors of money laundering from the sale of drugs in the Central American financial system, the phenomenon is far from having the magnitude that it has in Mexico and Colombia. However, the pressure that is being exerted in these countries against drug trafficking activities is forcing criminals to look to other countries in the region, searching for lesser repression. Central American countries are, for various reasons, including the weakness of their police forces, the most likely for this undesirable migration.

The article in Elfinancierocr.com, reported statements from Ana María H. Alba, FIBA AML Institute instructor, who indicated that the effect of such penetration would be "devastating; they are much smaller economies and an infiltration of this kind could cause foreign banks to place more demands on their cooperation, which would weaken the financial system in the region."

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More on this topic

Honduras: Drug Trafficking and the Economy

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