In a simultaneous operation carried out by the Attorney General’s Office of the State of Ecuador and the National Police, with the support of Germany, an alleged money laundering network linked to drug trafficking was dismantled. The investigation was called by the Public Ministry as Euro 2024 case. The deployment of police and officials for the raids took place in the provinces of Guayas, Manabí, Los Ríos and Azuay, involving 22 tax agents and teams specialized in the fight against organized crime.
According to the Prosecutor’s Office, the operation, led by the Anti-Money Laundering Unit, was carried out after an investigation that linked the alleged crime of money laundering with drug trafficking as a background. Among the main suspects is Jezdimir S.a citizen serbia who had already been convicted of drug trafficking in 2015. This case has been described by the authorities as a coordinated effort to attack the finances of transnational organized crime.
In total, several raids were carried out at strategic points, where evidence such as documents, invoices, cash, vehicles, computers, mobile devices, ammunition and firearms were collected. Three people were arrested: Jezdimir S., Johanna M. and Wilson M. In addition, charges will be brought against four legal entities allegedly linked to the network.
The hearing to formulate charges was set up a few hours after the operation. The Prosecutor’s Office reported that the judge ordered preventive detention for Jezdimir S., while Johanna M. and Wilson M. must comply with alternative measures, such as periodic presentation before the authorities and the prohibition of leaving the country.
The tax investigation process will last 90 days, a period in which the investigation will be expanded to determine the scope of the network and the possible involvement of other people or entities. The Prosecutor’s Office also mentioned that the four companies involved will face charges for their alleged participation in the money laundering scheme.
In 2023, Infobae reported how Ecuador became a money laundering center. According to a study by the Ecuadorian Observatory of Organized Crime (OECO), the money laundering It is the second expression of organized crime in Ecuador, only surpassed by drug trafficking. Money laundering is understood as the process that allows assets of illicit origin to be integrated into the legal economic system, appearing to have been obtained legally.
Regarding money laundering, the OECS indicates that this crime It concentrates on economic activities related to construction, purchase and sale of real estate and vehicles, pharmacies, restaurants, gas stations and online betting centers.: “Although attendees know the scope of money laundering, the results and investigations into this crime, as well as the interpretation of the norm, translate into a low percentage of convictions, as well as limited articulation between State institutions toward this crime,” is explained.
According to the study, it was determined that the autonomous and differentiated behavior between criminal economies and money laundering has at least of logics in Ecuador: “The first of them is that in those territories where there is a high flow of illicit commercialization, such as land borders and artisanal ports, organizations do not have incentives to generate money laundering schemes within these territories. Second, money laundering is generally concentrated in those environments where historically constituted economies or industries exist that facilitate the appearance of legality.” Likewise, the greater the income inequality in a province with international seaports, the greater the opportunity to generate activities or companies to launder money.
A study by the National Police also indicated that the dollarization and the baja banking facilitates the transaction of illicit activities and money laundering. Furthermore, the police analysis identified that the balkan mafia has diversified its operations towards money laundering through the purchase and sale of export companies, obtaining residence or investor visas.
