The Global Financial Integrity report places Costa Rica and Panama in positions 14 and 18 in the list of countries that moved the largest flows of illegal money in the world between 2003 and 2012.
EDITORIAL
The report entitled "Illicit Financial Flows from Developing Countries: 2003-2012" by Global Financial Integrity, said that between those years, the flow of illicit money in Costa Rica exceeded $94 billion, about $30 billion more than the amount accumulated between 2001 and 2011, according to reports from the same institution in mid-2013.
The amendments made to the law against money laundering exclude the media from the list of subjects required to report transactions.
With this amendment passed in the Legislative Assembly of El Salvador's, the Law Against Money and Asset Laundering will be only oblige financial institutions to report to the Finance Unit of the Attorney General cash transactions of $10 thousand or more and other formats when they are over $25,000.
Reports of suspicious transaction and the inclusion of government officials in the "politically exposed persons" category are part of the reforms to the law.
From a statement by the Legislative Assembly of El Salvador:
A statement of amendments to the Law Against Money and Asset Laundering, was adopted at the plenary session on Thursday, with 72 votes in order to harmonize the law of El Salvador with international standards on combating money laundering, terrorist financing, organized crime, drug trafficking and all its variants.
U.S. Senators are questioning the Legislature about the delay in the approval process of the law against money laundering, required before any funds are released.
The Legislature continues to delay the adoption of legal reforms required for the U.S. government to deliver the $277 million Fund FOMILENIO II.
President pro tempore of the Senate of California, USA, Darrell S.
A request has been made for the law against money and asset laundering to meet international standards, a condition required to obtain funds from FOMILENIO II.
The Salvadoran Foundation for Economic and Social Development (FUSADES) requested that the Legislature take into account the reforms recommended by the Caribbean Financial Action Task Force (Gafic) to the Anti-Money and Asset Laundering law, as it is a condition required by the U.S.
President Funes signed the Law Against Money and Asset Laundering without noticing the lack of special controls for Politically Exposed Persons.
The special controls for Politically Exposed Persons (PEP), was one of the reforms that was left out because the deputies did not approve it and the President, Mauricio Funes did not suggest it despite this being a recommendation by the Caribbean Financial Action Task Force Group (CFATF by its initials in Spanish).
Amendments to the recently approved law are still deficient because they do not include regulations such as special controls for Politically Exposed Persons.
From a press release issued by the Salvadoran Social Economic Development Foundation (Fusades):
Background
Money laundering consists of making it seem that wealth acquired through illegal activities, such as political corruption and drug trafficking, comes from legal activities.
In Honduras the same ratio is 20%, in Panama 12%, 15% in Nicaragua, and in El Salvador and Guatemala 4%.
EDITORIAL:
At the global level similar percentages are seen in Brunei Darussalam with 21%, Paraguay with 19%, Malaysia 15%, Trinidad and Tobago 14%, Belarus 12%, and Iraq 10%.
The data comes from calculating the relationship between the respective Gross Domestic Product in 2011 (according to the World Bank) and the average illicit flows of money from every country in the years 2002-2011, according to the Illicit Financial Flows from Developing Countries report, 2002-2011.
The adoption of the standard was a requirement imposed by the U.S. for the disbursement of the Fomilenio II program.
From a press release issued by the Legislative Assembly of El Salvador:
The National Assembly passed with 83 votes a list of amendments to the Law Against Money and Asset Laundering, ensuring that legislation of El Salvador is in accordance with International Standards on combating money and asset laundering, financing of terrorism, organized crime, drug trafficking and all its variants. The approval of these modifications also complies with the recommendations of the Financial Action Task Force (GAFT by its initials in Spanish).
The U.S. Ambassador to El Salvador stressed the need to adopt reforms to laws against money laundering and Public Private Partnerships.
According to the U.S. Ambassador Mari Carmen Aponte, laws against money laundering and Public Private Partnerships need to be passed in order to issue "clear signs" along with efforts to combat corruption in the country.
If approval is not given to the amendments to the Law on Public-Private Partnerships and the Money and Asset Laundering Act, the second disbursement will not be realised.
This was explained by Salvadoran President Mauricio Funes. "Donors are free to stipulate any conditions deemed appropriate. Everything that is the responsibility of the Executive has already been done," he said.
The standard allows the state to seize assets related to illicit operations based on tax fraud, money laundering, drug trafficking or organized crime.
Salvadoran Congress also agreed to add the crimes of fraud along with those of public finances and corruption to the Special Law on Forfeiture and Management of Property of Illicit Origin or Destination.
A short-term plan is being prepared to improve the investment climate and lift objections from U.S. Congress to fund the delivery of the Millennium Challenge Corporation
The information was confirmed by the U.S. ambassador to El Salvador, Mari Carmen Aponte. Both governments are working on concrete actions in the short term to allow for these improvements.
Detections have been made of cash transfers which are then returned via wire transfers and which apparently are linked to drug dealing and extortion.
The information was confirmed by the president of the Bank of Guatemala, Edgar Barquín, who explained that from Guatemala cash is exiting in dollars and going to El Salvador and then returning to the country through wire transfers.
Adherence to the group known as GAFISUD by its initials in Spanish will strengthen the work on preventing and combating money laundering and repressing terrorist financing .
A press release from the Superintendency of Banks of Guatemala reads:
The Government of the Republic of Guatemala reported that the incorporation of country into the Financial Action Task Force of South America (GAFISUD) was unanimously passed during the "XXVII Plenary of Representatives Financial Action Task Force of South America (GAFISUD)" held in Buenos Aires, Argentina, from the 15th to 19th of July 2013.