The bill being discussed in Costa Rica basically seeks to extinguish the assets of organized crime, but there are those who claim that as proposed, it puts at risk the presumption of innocence of individuals.
The extinction of domain is a concept that in practice refers to seizing or confiscating assets linked to criminal activities, and then transferring them in favor of the State.
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 figure is an estimate made by the Intelligence Directorate in Costa Rica released by the US State Department, along with information that indicates a rise in criminal organizations based in the country, and little capacity to combat them.
Money laundering is a criminal activity that handles amounts that are difficult to measure. For example, the report "Illicit Financial Flows from Developing Countries: 2004-2013" by Global Financial Integrity says that during the aforementioned 10 year period, the flow of illicit money from Costa Rica exceeded $11 billion, that is about $1.1 billion a year.
If emergency measures are not taken, Central America will soon collapse into failed states dominated by criminal organizations who are able to buy political power.
This is the dramatic but realistic conclusion reached by a study on the subject carried out by a coalition of Guatemalan institutions composed of the Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations (CACIF), the National Economic Research Center (CIEN) the Foundation for the Development of Guatemala (FUNDESA) and Fundación G.
Assurance has been given that companies where Continental Group or its shareholders have a minority participation may continue to operate normally.
As outlined in an article on Televicentro.hn , the general coordinator of Government, Jorge Ramon Hernandez Alcerro, stated that "... 'there are over 40 companies' which have with less than 50 percent in shares of Continental Group, whose president is the banker and politician Jaime Rosenthal."
Drug trafficking and gangs are the main factors responsible for intentional murders in the most violent countries in the world: Honduras, Belize, El Salvador and Guatemala.
According to a report by the United Nations Office on Drugs and Crime at the United Nations (UNODC), in 2012 Honduras recorded 90.4 killings per 100,000 inhabitants.
In Belize, the homicide rate is 44.7 per 100 thousand inhabitants, in El Salvador it is 41.2, and in Guatemala is 39.9.
An ECLAC study has revealed that companies in Guatemala and El Salvador pay the highest costs because of organized crime in Latin America.
According to data from the Global Competitiveness Index 2012-13, analyzed by the Economic Commission for Latin America and the Caribbean (ECLAC), in its report on safety in the logistics sector in the region, Guatemala has a score of 1.86, on a scale of 1 to 7, regarding the influence of crime and violence in operating costs of enterprises, where 1 is "very much" and 7 means "nothing".
Widespread corruption, institutional weakness, disputes between countries, and resistance to more taxes, are jeopardizing the chances of success of the plan and its 22 projects.
A summit held in Guatemala, where for the first time since 1856 Central American countries agreed to fight together, culminated in joint action plans to combat drug trafficking.
From El Salvador, the US president offered the funds for regional security projects.
Regarding distribution of funds, the president said Central American countries will be the ones deciding how to invest the funds according to their particular needs.
Laprensagrafica.com reported statements from Barack Obama, "It will be a program designed and led by Central American governments in the region ...
The lack of government capacity and economic power disadvantage compared to the drug industry, has lead to an increase in violence and corruption.
"Using systematic violence and corruption, intimidation and extortion of public officials, the wealthy and powerful criminal groups have been able to weaken police and judicial systems. They often use violence to threaten or punish anonymous complainants.
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.
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”.