The Extinction of Ownership Law includes approved amendments to the Commercial Code, so from now on company shares can only be nominal.
The Law aims to attack drug trafficking and regulates "the obligations of legal entities or individuals engaged in a profession or activity that could be used for the transfer, use, concealment and movement of goods from criminal or illegal acts.”
The movement of illegal drugs is creating ever larger fortunes hand in hand with the financial system, which is used for laundering money.
Bayardo Ramírez Monagas, advisor to the Venezuelan financial system, made this comment in the thirteenth conference on Financial Supervision organized by Guatemala's Banking Regulator (SIB in Spanish) as part of his introduction to the issue of money laundering.
New regulations in El Salvador to tackle gang violence foster the development of regional measures to control and proscribe local gangs.
In order to prevent gang members from fleeing the country to avoid jail, especially to Guatemala and Honduras, these countries has activated extra security measures at their borders.
President Funes asked Guatemala and Honduras to join the fight against organized crime, which has been growing as drugs cartels associate with local gangs.
Central American Nations should say "NO, THANKS", if results from said "aid" are going to be similar to what's going on in Mexico.
The inclusion of Costa Rica in the U.S. Government's list of the countries most affected by illegal drug trafficking confirmed what Costa Ricans already knew: Drug Trafficking has become a very serious issue.
Costa Rica now joins Guatemala, Honduras, Nicaragua and Panama, who are also included in the list.
Guatemala’s weak institutions have been unable to contain drug traffickers, causing marked erosion in the authority and legitimacy of the state.
In numerous Latin American countries, organized crime and violence are corroding governance and imperiling democratic legitimacy. This phenomenon is most severe in Guatemala, which is currently experiencing a full-blown crisis of the democratic state.
Do these countries have a real chance of stopping drug trafficking, in the context of economies like Guatemala's where the value of the drug economy is double the country's GDP?
In 2007, just 1% of all South American cocaine sold in the USA passed through the region. Now the figure is between 60% and 90%.
While Mexico is the country that makes international headlines for its daily panorama of death and corruption caused by drug traffickers, other nearby countries are also severely affected by the violence. In Honduras 15 people are killed every day from a population of only 7 million.
Rampant criminality is the main cause of the decline but a lack of "clear tourism development policies from the government" is also blamed.
Marco Antonio Barahona writing for Elperiodico.com.gt comments that, "from any angle, tourism is one of the sectors that has been most hit by the various crises that have affected Guatemalans since 2008".
The steady increase in criminal violence, linked to both street crime and drug trafficking organizations, has led to alerts abroad and many governments are warning their citizens of the danger of travelling in Guatemala. It is common for large international tour operators to cancel reservations, excluding the country from their regular itineraries.
Conrado Reyes was elected as Guatemala’s Attorney General by the deans of 9 law schools and the chief of the Supreme Court; his designation was annulled after 17 days in office.
An article by Tim Johnson in the Miami Herald describes how the country’s fragile democracy “nearly went narco”.
On May 25, Reyes took oath as attorney general and quickly proceeded to fire more than a dozen seasoned prosecutors, who’d been handling sensitive cases related to political murders, corruption and drug trafficking.
The United Nations designated Costa Rican Attorney General Francisco Dall’ Anesse Ruiz as the new head of the Commission Against Impunity in Guatemala (CICIG).
Dall’ Anesse has been the Attorney General in Costa Rica since 2003, and has not formally accepted the position yet.
“Dall’ Annese has excelled in leading investigations against drug trafficking and corruption, which ended in the trials against ex-presidents Miguel Ángel Rodríguez and Rafael Ángel Calderón”, reported Elperiodico.com.gt.
Lack of investment and development has triggered the establishment of criminal gangs in the border areas of Panama, Costa Rica and Nicaragua.
This was one of the findings of a study by the Institute of Strategic Studies and Public Policies (IEEPP). Javier Meléndez, advisor of the Institute, commented that “Organized crime has profited from these vulnerabilities, by providing ‘job’ opportunities for the local population, which ends up contributing to the logistics and operations of trafficking drug between Colombia and United States”.
An open war is going on in Jamaica over the detention of a kingpin drug dealer; this is an example of what may soon happen in Central America.
An article by Joaquín Villalobos in Elpais.com signals Honduras, El Salvador and Guatemala as the countries of the isthmus most affected by drug trafficking, a black market activity which leads to violence and corruption, and may eventually transform a country into a ‘failed state’
The United States will donate $4.4 million to combat drug trafficking and organized crime.
The resources will be used to assist in enforcing Honduras’ anti-drug law and border control inspections.
“Additionally, they will conduct educational programs for youngsters vulnerable to be recruited by criminal gangs, communal development programs, community police and prison management reforms”, reported Tiempo.hn.
A joint $953 million plan to fight crime developed by Central America and Mexico, will be presented to the United States on May.
According to the Central American Integration Secretary (SICA), Mexico and Central America require $803 million to fight crime, $120 million for prevention and rehabilitation and $30 million to strengthen institutions.
From Laprensagrafica.com: “The war against drug trafficking requires the most resources ($200 million), followed by organized crime ($130 million), police topics ($90 million), gangs ($60 million), murders ($60 million), illegal traffic of weapons ($48 million), and corruption ($60 million)”.
Authorities from the Central American countries have gathered in El Salvador in order to coordinate joint border security efforts.
Manuel Melgar, Salvadoran Justice Minister, stated that these efforts should be geared towards stopping drug dealing and organized crime.
“We must review how to strengthen border controls, not only at the points of entry, but also along the borders, specially at illegal entry points used by dealers and illegal aliens”, commented Alvarado.
Organized crime, especially the one related to drug trafficking, recruits its members in young, marginalized populations.
Antonio María Costa, executive director of the United Nations Office on Drugs and Crime (UNODC), stated that “Central America is very vulnerable to organized crime, due to a series of factors which include underdevelopment, large flow of guns and a young population”.