In 2019, the perception of corruption in public institutions increased in all countries of the region except Costa Rica, where it remained the same as in 2018.
As has been the case in recent years, Nicaragua's public sector continues to be perceived as the most corrupt in the region (transparency level 22 on a scale of 0 to 100), followed by Guatemala (26), Honduras (26), Dominican Republic (28), El Salvador (34), Panama (36), and Costa Rica (56).
The Dominican Republic, Panama and Honduras are the nations in the region where the majority of the population believes that corruption in government institutions has increased in the last twelve months.
The report "Barómetro Global de la Corrupción: América Latina y El Caribe 2019 - Opiniones y Experiencias de los ciudadanos en materia de corrupción" (Global Corruption Barometer: Latin America and the Caribbean 2019 - Opinions and Experiences of Citizens on Corruption), compiled by Transparency International and published on September 23, 2019, evaluated the perception of corruption in the countries of the region and some aspects of insecurity.
In 2018, the perception of corruption in public institutions increased in all countries in the region, except Panama, where it remained the same as in 2017, and El Salvador, where it slightly decreased.
As in previous years, Nicaragua's public sector continues to be considered the most corrupt in the region (level of transparency 25 on a scale of 0 to 100), followed by Guatemala (27), Honduras (29), El Salvador (35), Panama (37), and Costa Rica (56).
In 2017, the perception of corruption in public institutions increased in all of the countries in the region, with the exception of Guatemala and Nicaragua, where it remained the same as in 2016, and in Costa Rica, where it decreased slightly.
The public sector still perceives Nicaragua to be the most corrupt country (transparency level 26 on a scale from 0 to 100), followed by Guatemala (28), Honduras (29), El Salvador (33), Panama (37) and Costa Rica (59).
Proportion of people who have paid a bribe in the last year to access a public service: in Panama 38%, in Honduras 33%, in El Salvador 31%, in Nicaragua 30%, in Guatemala 28% and in Costa Rica, 24%.
EDITORIAL
The report "People and Corruption: Latin America and the Caribbean", prepared by Transparency International, shows how inhabitants of Latin American countries have got used to corruption: from the scandalous cases at the highest political level to under the table payments which are made on a daily basis when carrying out procedures as simple as requesting medical care in a public hospital or obtaining a document from a public office.
The Constitutional Court has suspended, in definitive from, the order given by President Jimmy Morales to expel the leader of the International Commission against Impunity in Guatemala from the country.
"...Acting without the accompaniment of his ministers, as ordered by the Constitution, inconsistency in the dates and non use of the process to resolve disputes established in the agreement between the Government of Guatemala and the International Commission against Impunity in Guatemala (Cicig) are the main reasons why the Constitutional Court (CC) yesterday ordered the definitive suspension of the expulsion from the country of Iván Velásquez, head of the Cicig."
The housing market, casinos, concert halls, and the livestock sector are all used to launder money in Central American countries.
Excerpted from the report "International Narcotics Control Strategy Report, Volume II, Money Laundering and Financial Crimes" by the US State Department:
Costa Rica Transnational criminal organizations continue to favor Costa Rica as a base to commit financial crimes due to its location and limited enforcement capability. Costa Rica’s government has attempted to strengthen the legal framework for supervision and enforcement; however, challenges remain in mitigating money laundering risks. Costa Rica is a transit point that is also increasingly used as an operations base for narcotics trafficking; and significant laundering of proceeds from illicit activities continues. Costa Rica should continue to close financial crimes legislative gaps and allocate resources for investigation and prosecution.
The Superintendency of Banks has taken over administrative and operational control of FPB BANK, after it was linked to the corruption case in Brazil known as "Lava Jato" ('Operation Car Wash' in English).
From a statement issued by the Superintendent of Banks:
Through Resolution SBP-0022-2017 issued by the Superintendency of Banks of Panama, orders have been given for the seizure of administrative and operational control of FPB BANK, INC., effective from three thirty meridian time (3:30 pm) on Friday, tenth (10) February this year, based on the provisions of Article 131 of the Banking Law.
The public sector felt to be the most corrupt is still Nicaragua (transparency level 26 on a scale from 0 to 100), followed by Guatemala (28), Honduras (30), El Salvador (36), Panama (38) and Costa Rica (58).
In 2016 the perception of corruption in public institutions increased in all Central American countries except Guatemala, where it remained as in 2015 and in Costa Rica, where it fell.
The Public Prosecutor and the CICIG have denounced cooptation of the state through a network of corruption headed by Pérez Molina and Roxana Baldetti and arrest warrants have been issued including for very high level entrepreneurs.
Among the employers that the CICIG has linked to this case are Flavio Montenegro, president and manager of Banco G & T Continental, Adolfo Fernando Peña of Banrural, Enrique Castellanos, general manager of Claro, and Alvaro Mayorga Giron, former president of the CACIF, among others.
Amid the controversy generated by the Panama Papers, the Financial Action Task Force in Latin America has recognized the efforts made by the country in issues of transparency.
From a statement issued by the Latin American Financial Action Task Force (GAFILAT):
"... Relationship of the current situation with the Evaluation of Panama:
Panama is a member of GAFILAT and as such will be evaluated in the context of the Fourth Round of Mutual Evaluations next year (2017), based on the schedule of assessments approved by the body. Recently. Panama has made considerable efforts to improve its AML / CFT system, which included the modification of its legal system, it has been recognized by FATF; It is important to note that these measures will be the subject of the next assessment to be made on that country.
The Public Ministry of Guatemala has announced that its investigations have shown that a network of illicit laundering of money and other assets operated in the port terminal.
Consideration is being given to canceling the contract with the concessionaire Container Terminal Spanish Quetzal after the denouncement that it paid bribes to Perez Molina for the award of the terminal.
The business meeting is scheduled for April 26 and will address issues related to corruption, business ethics and auditing of public funds.
The National Association of Private Enterprise (ANEP) has announced that the National Meeting of Private Enterprise (Enade) will be held on April 26 at the Sheraton hotel, and will be attended by former Spanish President Jose Maria Aznar.
Among the factors hindering the fight against money laundering, are the existence of bearer share corporations, a lack of collaboration among government agencies, and a weak judicial system susceptible to corruption and favoritism.
From the report by the US State Department:
Panama’s strategic geographic location; dollarized economy; status as a regional financial, trade, and logistics center; and lax regulatory system make it an attractive target for money launderers. Money laundered in Panama is believed to come in large part from the proceeds of drug trafficking due to the country’s location along major drug trafficking routes. Tax evasion, financial fraud, and corruption also are believed to be major sources of illicit funds.
With objectives similar to those of the CICIG in Guatemala , the MACCIH now has legislative backing and funds to begin its task of fighting corruption, an obstacle to the economic and social development of Honduras.
Following approval in the Honduran Congress of the agreement signed by President Juan Orlando Hernandez and the Organization of American States (OAS) to set up the Support Mission Against Corruption and Impunity in Honduras (MACCIH by its initials in Spanish), the delegate in Honduras of the hemispheric body announced that funding for setting up a new body to fight prevailing corruption, independent of the constitutional powers of the country, is now available.