The versatility with which criminal networks move money flows through human trafficking and the illicit smuggling of migrants is also reflected in the laundering of resources of illicit origin, especially in the countries of Central America, which has become in a transit corridor to the United States.
At least, this is reflected in the “Report on Regional Typologies of Money Laundering and Financing of Terrorism in Latin America” prepared by the Latin American Financial Action Group (Gafilat) of which Guatemala is a member.
One of the aspects highlighted in the document is that alarm has been generated by the more visible ways in which money is extracted from victims, as the phenomenon of migration increases, which entails a massive displacement of people.
The document analyzed 52 cases that expose the typologies, products and sectors used to launder assets, during the period 2021-2022, and the crimes related to human trafficking and migrant smuggling are considered thematic, as well as one that is related with remittances, the typologies used, their consistency and threats.
First Connection
In one of the cases involving the Gafilat analysis for Guatemala, funds were identified from illicit human trafficking and the use of banking agents to send and receive remittances and international transfers, related to a network that managed to launder about Q1 thousand. 795 million in Guatemala, using the purchase and distribution of fuel in Huehuetenango as a front.
In addition to illicit human trafficking, the case is very complex since it was also detected that it was the means for other crimes such as trafficking in narcotics and psychotropic substances, corruption, smuggling and other crimes in a border area with Mexico.
Another modality is “the placement and stratification of funds from drug trafficking” in which virtual assets could be used for money laundering, since deposits in savings and monetary accounts were made in border sectors and were destined for several countries in the region.
New typology
The Gafilat report details a case that was detected in Honduras, regarding the use of alleged remittances to operate funds from human trafficking for amounts of up to US$65 thousand in three years, with transactional connections in Guatemala and Mexico.
Among the warning signs collected are the sending and receiving of remittances for low amounts with no apparent relationship with the sender and the beneficiary; transfers sent and received from border countries that are part of the migratory route to the United States and transactions that, due to their amount, do not correspond to the client’s profile.
When presenting the case, a person “X” who declares himself to be a merchant for the sale of clothing, who is part of the organized crime gang and linked to human trafficking, transports individuals across the borders of Honduras, Guatemala and Mexico. , installment payments are made by the victim or by a family member of the victim, with an average of US$8 thousand, made with a frequency of at least two to four occasions in a period of 60 days for sums between US$781 and US$2 thousand. 488.
In a period of three years (2011-2013), he sent at least three remittances per beneficiary, with a frequency of at least one per month; for a total average sum during the three years of US$121,287.96, which were sent to different people with no apparent business or family relationship; The funds were sent to multiple countries such as Honduras, for a sum of US$2 thousand; Guatemala for a total of US$49 thousand 64.04; Mexico, US$65 thousand 174.76 and the United States for US$2 thousand 57.73; The concept of these amounts is the payment made by the victims or family members as they move across the borders towards the United States.
Likewise, between the years 2012-2013, he received remittances from third parties without a reasonable family or commercial link, for a total amount of approximately US$19,518.55, with a frequency of two to three transactions per month, for amounts ranging from US$48 up to US$2 thousand. These funds come from various countries such as Honduras (US$2,556), Mexico (US$429.71) and the United States (US$16,532.54).
In this case, according to the official document, the movements of remittances with larger amounts were carried out through a financial entity that has a presence in Honduras and Mexico.
Turns to Ecuador
In Ecuador, the Gafilitat report presents the file of “Transfer of goods as payment for the illicit transfer of migrants to the United States”, and how warning signs of money transfers sent to Guatemala, Mexico and the United States were detected. by people to whom no family link was identified.
In addition to such transfers and deposits, migratory movements were soon recorded in Peru, Colombia, Mexico and the United States, without the return of people to Ecuador being observed.
The case originates from the complaint of a migrant family member, against the person who offered the illicit transfer from Ecuador to the United States, but who unfortunately died in Mexico before entering his destination, but then received threats to obtain payment of the values that the deceased promised to deliver to the organization in life.
In this regard, money orders sent/received from Guatemala, Mexico and the United States to members of the criminal network were identified.
Regional scenario
Regarding the crime of human trafficking and migrant smuggling, the Gafilat indicates in its conclusions that the use of front companies to introduce the product of criminal activity into the legal market could be seen.
And transactions were observed below the threshold or even for amounts that did not correspond to the person’s profile. The use of resources from organized crime, as well as legal entities to mix cash, was also identified.
Currency exchange operations and the stratification of funds were also detected, using different accounts related to each other, and the use of entities that are dedicated to providing virtual assets.
SIB: “We prevent and report”
Prensa Libre requested the opinion of the Superintendent of Banks, Saulo de León, regarding the possible vulnerabilities of the national financial system that can be used by organized crime to launder money, to which he responded that “on the issue of preventing money laundering , we as the Superintendency of Banks, as IVE (Special Verification Intendance) and as a system of obligated persons, have the mandate to prevent these criminal activities, but the fight corresponds to the Public Ministry and the Judicial Branch.
There is a very key word here and it is awareness and willingness to keep prevention in force at all times. One of the tasks of the IVE is to maintain a presence in the banking system so that they establish policies, measure their risks and have mechanisms for detecting and reporting suspicious transactions.
As a Financial Intelligence Unit, it prevents money laundering, but behind this activity, there are endless crimes and we have identified at least 17 crimes with the highest incidence in Guatemala.
It does not mean that there has been laundering in the banking system; “It is that we have control mechanisms that identify potential transactions that could be crimes and what we do is pass them through the Public Ministry’s sieve so that a criminal investigation is carried out.”
He added that the SIB has generated mechanisms to be able to carry out strategic analyzes and establish transactional, property, geographic and international networks to be able to support the MP in the fight and combat against money laundering. Furthermore, that “99.9% of all remittances are channeled through entities that are registered with the IVE as obligated persons and each month they report all transactions.”
What is Gafilat
The Latin American Financial Action Group (Gafilat) is an intergovernmental organization that brings together 18 countries in South America, Central America and North America: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Dominican Republic and Uruguay.
Gafilat prepares a report on regional typologies periodically, with the latest report corresponding to the 2019-2020 period. As part of this ongoing process, it was decided to analyze the ML methods detected by GAFILAT countries in the period 2021-2022.
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