2025.2121.9

Curbing illicit financial flows in Latin America

Combating illicit financial flows in Latin America
Client
Bundesministerium für wirtschaftliche Zusammenarbeit u. Entwicklung
Country
Ecuador, Mexico, Peru
Runtime
Partner
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Contact

Natali Edith Barron Infante

Contact us
A man checks a label on a log showing where the wood has come from.

Context

Latin America is experiencing a rise in organised crime and, with it, an increase in illicit financial flows. Among the most important drivers are illegal mining, illegal deforestation, tax evasion, corruption and human trafficking. The consequences for political, economic and social stability in Latin America are far-reaching: trust in the state, democracy and financial systems is eroding, investment is falling and sustainable development in the region is being undermined.

The countries are working hard to prevent illicit financial flows, curb the underlying crime and recover illicitly acquired assets.

Objective

The institutional capacities to curb illicit financial flows in Latin America are strengthened.

Approach

The Financial Action Task Force of Latin America (Grupo de Acción Financiera de Latinoamérica, GAFILAT) supports its 18 member states in improving their systems, with the aim of reducing money laundering and the financing of terrorism. The project works with GAFILAT to achieve this goal and trains its staff. For example, it supports the identification of money laundering risks. The project also conducts gender-sensitive regional studies and systematically identifies and analyses money laundering methods.

In addition, the project develops and tests good practices in Ecuador, Mexico and Peru. It conducts transnational studies on topics such as illegal mining, and supports the development and modernisation of digital tools. These enable authorities to access registers and information more quickly, and to pool and share them. Examples of such tools include search and cooperation platforms.

Last update: December 2025 
Three people stand next to a seized motorbike that has been loaded onto a truck. There is a sign in the foreground that says ‘Bienes incautados al servicio del país’.
Further Project Information

CRS code
15113

Policy markers

Principal (primary) policy objective:

  • Democratic and inclusive governance

Significant (secondary) policy objective:

  • Gender Equality

Responsible organisational unit
2C10 Länderübergreifd. Ansätze und Qualität

Financial commitment for the actual implementation phase
4,000,000 €

The project contributes to these Sustainable Development Goals (SDGs) of the United Nations:

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