Jesse J. De León - Governance, Public Policy and Central America

  Legitimacy Facades: Mechanisms, Challenges, and Estimates of Money Laundering in Central America With a Focus on Guatemala Published in the Actualidad Centroamericana Magazine of ICAP Costa Rica Dr. Jesse Josué De León In Guatemala and throughout Central America, money laundering has evolved into sophisticated forms that are camouflaged as legitimate economic activity. Two recurring patterns—commercial establishments with little customer traffic in high-end locations and real estate projects declared “sold out” during the presale phase—illustrate how illicit capital is integrated into the financial system through fictitious accounting operations. This article analyzes the technical mechanisms behind these strategies, the detection instruments employed by the Special Verification Intendancy (IVE), and the institutional barriers that hinder effective enforcement. It argues that, beyond the technical capabilities of financial intelligence units, the bottleneck lies in weaknesses wi...