Argentina: the FARC and Money Laundering



Argentina: the FARC and Money Laundering

The FARC operate in Argentina for two reasons. First, like Paraguay, Argentina is an easy place to launder money. Second, and simply put, there are local political elements sympathetic to the FARC.

There are anti-ML laws on the books here, but little more than “window dressing” has been put forth to implement the legislation. There are many cases where Argentina’s FINCEN has asked the central bank to investigate certain accounts with registered banks in the country, but these investigations languish on the desks of those officials who have either been compromised, or worse, simply don’t see anti-ML investigations as an important part of their job. This fact is not a secret.

There are literally dozens of businesses in Buenos Aires that, for a small fee, will take suspiciously large sums of cash, take up to an hour, and return with bank account documents, a check cash card, and a hand shake. No questions are asked. These businesses are often linked to second-tier Argentine banks that have nested accounts with larger international banks. Considering the Central Bank chief has rotated an average of every 15 months since 1930, there is little continuity to foster a strong anti-ML environment. Besides, from the Central Bank’s point of view, there are bigger fish to fry. Debt is still number one on the agenda.

Meanwhile, Buenos Aires is full of radicals, socialists, communists, and even anarchists. All receive equal audience in the country’s current political climate. Members of the FARC, who come here to seek council, reprieve from combat, or simply kinship, will find all three in Buenos Aires. There are FARC safe houses here. Some businesses operate as fronts for FARC money laundering, mostly at the “layering” phase. Top FARC commanders have the ear of a small number of Argentine bureaucrats. One name to look into is Sr. Calderon.

Finally, the FARC are able to move in and out easily through the triple border area. There will never be a threat of FARC-style “terrorism” in Argentina because this country offers a political atmosphere that enables the FARC to develop its political ideology and connections. If the FARC began to operate the militant side of its organization, it would risk losing touch with those Argentines who harbor FARC members. These Argentines are sensitive to any activity that is more threatening than a chat over coffee or wine.

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