People

Peru is a source and destination country for human trafficking, with the main driver being domestic demand. Despite efforts to combat this, COVID-19 restrictions have made it more difficult to identify and prevent trafficking, leading to new forms of exploitation using digital technology. Criminal networks are targeting vulnerable Venezuelans, paying for their transportation, lodging and living expenses to force them into prostitution and pay quotas. Women and children, particularly indigenous people, are the most frequent victims. Corruption among officials exacerbates this criminal market. Trafficking is more common in areas near illegal mining operations. Tourists from the US and Europe also contribute to the problem, exploiting victims in popular tourist areas such as Cuzco, Lima and the Peruvian Amazon.

Peru is also a destination and transit country for human smuggling, particularly for people from Venezuela, Haiti, and African and Asian countries, and for those seeking to reach North America. There are reports of illegal transportation of Venezuelans across the border from Ecuador to Peru. The smuggling of people is facilitated by drivers linked to land transport companies, particularly in the city of Tumbes and the region of Madre de Dios. Criminal networks include police officers and migration officials who work at control points across the border and facilitate illegal activities. The current political situation in Peru may subject smuggled individuals to extortion, scams and thefts as they try to move closer to their connecting points.

Extortion and protection racketeering is a prevalent criminal market in Peru, affecting various industries, including public transport, construction and commerce. Criminal groups use a range of tactics, including ‘security quotas’ and predatory loans, to extort businesses and individuals. These practices have increased during the economic recovery following the COVID-19 pandemic. While law enforcement agencies have dismantled several criminal groups and arrested their members, the Peruvian National Police received more extortion complaints in 2022 compared to 2021, indicating that the issue remains a notable concern.

Trade

Peru remains a transit country for arms trafficking, with weapons from the US and Mexico being transported through Peru to Ecuador and then on to Colombia. This illicit arms trade is supported by organized criminal groups across the country, particularly in relation to cocaine production. The profits from the market benefit domestic actors, with weapons such as pistols, revolvers and breech loading shotguns being sold on the black market. Despite an increase in violence associated with criminal activities throughout the country, there is a lack of regional policies to address the magnitude and scope of the problem, and the police’s capacity to investigate this market is very limited. The border between Peru and Ecuador continues to play an important role for arms traffickers aiming to exchange arms between the two countries. Weapons and ammunition arriving in Ecuador from Peru also reach guerilla and armed groups active in Colombia.

Counterfeit goods are a significant problem in Peru, with the trade estimated to be worth hundreds of millions of dollars. Healthcare products, particularly medicines, are a major concern, with almost a quarter of medicines sold in Peru being counterfeits. The COVID-19 pandemic has also benefited the counterfeit goods market, with authorities conducting operations to prevent the entrance of counterfeit pharmaceutical products that could endanger patients’ health. Additionally, integration with transnational groups in border areas has enabled them to trade and traffic counterfeit goods to neighbouring countries. There is no evidence to suggest that the illicit trade in excise goods is prevalent in Peru.

Environment

Illegal activities such as logging, mining and wildlife trade continue to fuel deforestation and threaten indigenous communities in Peru. Logging is the most common flora crime, associated with other crimes such as drug trafficking and illegal mining. Deforestation in Peru hit historic levels during the COVID-19 pandemic, with most of the timber trade being illegal, generating hundreds of millions of dollars for trafficking networks. Criminal actors exploit legislative grey areas, manipulate paperwork and avoid control points to sell directly to local markets or smuggle wood to neighbouring countries. Effectively addressing this crime is challenging due to the country’s extensive territory.

In recent years, wildlife trafficking has experienced an upsurge in Peru, with thousands of live animals being seized by law enforcement every year. The illegal trade of shark fins at the Ecuador-Peru border remains problematic, with destinations including the US, Europe and Asia. Indigenous people in the Amazon region capture animals and sell them to middlemen, who then sell them to retailers in local markets, or to international collectors. The most trafficked species in Peru are birds, small primates, larger animals, such as the Andean bear, vicuñas, monkeys and various cats. Animal parts, reptiles and amphibians are also part of this illicit trade. Wildlife is sold in local markets without adequate social awareness of the negative impact, and low-paid officers often accept bribes to provide protection and permit the transport of illegally sourced animals.

Illegal gold mining is a pervasive criminal activity in Peru, with annual profits reaching billions of dollars, making it more lucrative than the country’s cocaine trade. A fifth of Peru’s gold exports are of illegal origin, and criminal actors charge miners for escorting machinery, chemicals and gold in exchange for ‘peace and security’ in their domains. Most criminal groups involved in illegal mining are family-based networks, where corruption is rampant, with officers and prosecutors facilitating impunity. Regions with prevalent illegal mining also have a high incidence of human trafficking, particularly for sexual labour exploitation. Smuggling of illegally mined gold into other countries has become more profitable in recent years, further increasing concerns.

Drugs

Peruvian drug mafias mainly export opium, as they lack the laboratories needed to process it into heroin. Nevertheless, opium cultivation is on the rise in Peru, with opium latex being transported from the three different regions: Piura, Cajamarca and Amazonas, to Ecuador. The opium market is expanding to other regions, such as La Libertad, Junin, Cusco and Lima. Domestic actors profit from cultivating opium and micro-commercializing heroin. However, there are currently few economic or geographic incentives to develop this market since coca cultivation is still highly profitable.

Despite law enforcement measures to decrease coca plantations, Peru remains a significant source country for cocaine. The COVID-19 pandemic and falling coffee prices have increased coca cultivation. Operations that destroy coca crops only displace the trade into other territories. In recent years, there has been a surge in demand for and production of cocaine, with international demand rising and production increasing. Serbian mafias have displaced Mexican and Colombian mafias as the actors controlling the market in Peru, with the Shining Path providing security for crops in the VRAEM region (Valley of the Apurímac, Ene and Mantaro Rivers). Cocaine produced in Peru is almost exclusively transported to the international market, through various international shipment routes.

Peru has become an important producer of marijuana, particularly in the Huanuco region, which has been a major source for neighbouring Bolivia and Chile. The VRAEM region, where remnants of the Shining Path and cocaine traffickers operate, has also seen an increase in marijuana plantations. While the cultivation, transport and sale of medical cannabis is legal in Peru, most reported cases of marijuana seizures in the country are related to micro-drug commercialization. Small criminal networks serve local demand for cannabis in Peru.

Peru is also a source country for most of the supplies used to make synthetic drugs, which are then sent to Paraguay. Loose criminal networks tend to be involved in synthetic drug seizures in Peru, and there has been a surge in the use of these drugs among young partygoers, particularly in Lima. Popular drugs include 25I-NBOME and 2CB, known as ‘pink cocaine/wax’, from Colombia. Domestic actors who transport and micro-commercialize the drugs profit from the synthetic drug market, with some possible involvement from foreign nationals.

Cyber Crimes

Peru has recently been targeted by international organized crime groups in cyber-attacks aimed at intelligence services and critical infrastructure. Military forces have also been attacked, resulting in leaked classified information. However, there is limited transparency regarding the presence and scale of cyber-dependent crimes in Peru. The lack of strong technological capabilities in the financial system and state institutions creates a fertile ground for these crimes to flourish. The Peruvian government has not made a public statement on the recent attacks, raising concerns about its ability to handle the institutional and technological challenges of cybercrime.

Financial Crimes

Financial crimes are on the rise, including online scams, such as phishing and computer fraud, which have seen exponential growth in recent years. Phishing attempts are frequently made through email or social media messaging, while tax evasion remains a prevalent issue for the country. The Peruvian government has also identified numerous instances of irregular activity related to embezzlement during the COVID-19 pandemic. However, there is currently no evidence linking these acts to organized crime.

Criminal Actors

The presence of criminal networks is a major problem in Peru, particularly in Lima and the Constitutional Province of Callao, where they engage in the micro-commercialization of drugs, robberies, extortion, human trafficking and flora crimes. These networks also use tactics such as hiring paramilitaries to maintain control over their criminal markets. Additionally, they work in connection with international mafias, particularly those from Serbia, Colombia and Mexico, to process and transport cocaine to Lima and border regions. Some of these groups also have ties to criminal activity within local jails.

Crime organizations are deeply embedded in the state, and most official investigations into crime groups find some level of complicity from law enforcement agencies, politicians and even judges. Peruvian police officers have been accused of providing security during the transportation of illicit goods, including illegally sourced animals and timber, as well as providing protection to criminals. The COVID-19 pandemic has exacerbated corruption in several parts of the country.

Many criminal groups in Peru are small and operate locally. Mafia-style groups have significant control over certain regions, such as Loreto and Ucayali, where they primarily engage in timber trafficking, and the VRAEM area, which is controlled by drug traffickers and the Shining Path guerrilla group. Other criminal groups operate throughout Peru, controlling territories and infiltrating state structures while outsourcing some of the resources they need.

Peru is also home to several foreign criminal groups that engage in drug trafficking and other illicit activities. Balkan mafias, for example, are strong in the country and are responsible for trafficking cocaine from Peru to Europe, with the help of local drug traffickers. Venezuelan networks engage in human trafficking operations that aim to sexually exploit their victims, while other prominent foreign criminal groups include the Italian mafia, and Colombian, Mexican and Ecuadorian cartels. These foreign criminals rely on local actors to cultivate coca leaves and transport cocaine throughout the country.

The collaboration of companies with criminal actors in Peru is fundamental in certain criminal markets. In the illegal trade of gold, for example, criminal groups rely on legal businesses within the mining industry, as well as local businesses. These companies are key players in the illicit supply chain, as they buy a notable amount of gold from illegal miners for considerably reduced prices. Due to deficient oversight, businesses can sell and export illegal gold, covering its origin through fake transactions and documents. Similarly, in the case of illegal logging, legal transport companies are employed to move the products and are provided with fake documentation of the woods’ origin. These companies use individuals with financial difficulties to cash cheques for criminal organizations.

Leadership and governance

Peru’s political landscape has been plagued by instability, with the current president facing widespread opposition and criticism following her appointment. The lack of democratic legitimacy in the executive and legislative branches of the government has led to protests and calls for all politicians to step down. Peru’s political leadership appears to be ineffective at all levels, with weak capacity to control and prevent illegal markets from flourishing. While some policies to combat organized crime have been approved, there is no political or professional will to effectively tackle a culture of illegality that has permeated Peruvian society. Peru’s judiciary has demonstrated impressive levels of independence and resilience in high-profile cases, making it possible to investigate and prosecute a number of very high-level politicians. However, this seems not to be a deterrent to corruption in the country, as numerous political elites have faced allegations of corruption and human rights violations. Furthermore, access to information in Peru is fairly good, although there is still no independent appeals body in place.

Peru is actively engaging in international cooperation efforts to combat corruption and organized crime. The country has also entered into several extradition treaties, and compliance with these procedures are generally observed. The country has ratified and entered into force all relevant treaties and conventions pertaining to organized crime. Peru has also implemented various national policies and laws to address organized crime, drug trafficking, terrorism and other criminal activities. However, many of these laws are not adequately enforced, and criminal procedures tend to be weak and slow.

Criminal justice and security

The judicial system in Peru is slow and lacks trustworthiness in relation to organized crime cases that are not high-profile. Judicial notices take a long time to be delivered to all parties involved. In recent years, Peru has established the Superior Courts of Justice specialized in Crimes of Organized Crime and Corruption of Officials. This comprises seven specialized criminal courts, four permanent appeal courts, and three transitional courts specifically addressing organized crime and corruption cases. Peru’s prisons are overcrowded, a substantial problem across the country.

Budget cuts and transfers of officers to other departments have raised concerns of political retaliation and weakened investigations into corruption and organized crime. Despite these challenges, Peru’s national policy has resulted in the dismantling of several mafia-style groups involved in contract killings, kidnappings, extortion and trafficking across the country. However, the international community and civil organizations have reported instances of excessive use of force by the police during mass protests. Police effectiveness in crime prevention and control is minimal, with budget constraints limiting their ability to make progress in combatting organized crime and drug trafficking.

Organized groups have taken control of Peru’s northern border with Ecuador and southern borders with Bolivia and Chile, targeting Venezuelans, minors and Peruvians for human smuggling activities. Despite the presence of minefields and heat-sensing cameras on the Chilean border to Peru, smugglers have been able to transport foreign nationals using fraudulent documentation. Peru’s strategic location for the cocaine trade, due to its suitability for coca leaf cultivation and vast ungoverned areas, enables groups such as the Shining Path and drug trafficking clans to flourish. The country’s border with Bolivia and Brazil provides access to Brazil’s growing domestic cocaine market and international shipping routes, with authorities reporting an increase in cocaine production in border areas. The Napo River has been particularly affected by illicit activities, including drug trafficking and mining.

Economic and financial environment

Peru is considered to have a low risk of money laundering and terrorist financing. The country has made significant improvements in recent years with regards to money laundering prevention, including the approval of the National Plan. However, despite adequate legal frameworks and policies on money laundering, there is a need to prioritize investigations and increase resources to strengthen the operational and management capacity of the Public Prosecutor’s Office.

The informal economy in Peru has grown and become more prevalent in multiple economic sectors. Peru also has some of the highest taxes in the South American region, which incentivizes criminal markets to smuggle goods. Organized crime is particularly prevalent on the north coast of Peru, where it has emerged in parallel with economic growth. Companies of all sizes have been victims of extortion, especially in public transport, construction and commerce. This phenomenon has spread through several cities, from Callao to Tumbes. The police have been combatting extortion through ‘mega-operations’ that involve all law enforcement entities.

Civil society and social protection

Peru recognizes human trafficking and migrant smuggling as crimes against human dignity and provides means to compensate victims. However, support services for LGBTQ+ and male victims have remained limited. Peru’s national legislation offers protection to witnesses, victims and collaborators involved in organized crime investigations, including police protection, change of address and personal data protection. Nevertheless, criminal organizations have been known to kill protected witnesses.

The Ministry of Interior in Peru has introduced a Guide for the Prevention of Organized Crime, aimed at reinforcing the fight against criminal organizations and promoting citizen safety. However, the effectiveness of initiatives to prevent crime is hindered by sporadic implementation, lack of inter-institutional coordination and limited resources.

Journalists in Peru face judicial harassment, physical and verbal abuse by political activists, and inadequate protection despite press freedom guarantees. Environmental defenders have been killed by actors linked to drug trafficking, illegal logging and mining, leading to human rights abuses. Non-state actors reporting on corruption and criminal organizations in remote areas face violence and even death. The political turmoil and violent demonstrations since the impeachment of former president Pedro Castillo have raised concerns about potential human rights abuses in the country. Limited access to public information and inadequate protection for journalists, who face intimidation and abuse, compound the situation.

People

Ecuador is a source, transit and destination country for human-trafficking victims, mainly destined for sexual exploitation and forced labour. The victims are often members of vulnerable groups, such as people with disabilities, returned Ecuadorians, indigenous people and youth with access to social media, which is often used as a recruitment tool. In some cases, there are misconceptions regarding the legality of trafficking due to certain cultural practices. Victims are sometimes exploited within their own family circles. The high level of human trafficking and lack of understanding of the number of organized-crime groups involved have left the Ecuadorian authorities in a weak position. Children are particularly at risk, with reports of armed Colombian groups forcibly recruiting Ecuadorian children living along the northern border. Human-trafficking networks are also connected to other types of crime, including contract killings, drug trafficking and forced recruitment for armed conflicts.

Regarding human smuggling, Ecuador’s visa-free entry for many nationals has made it a primary landing zone for thousands of people attempting to reach the US. Criminal networks transport people from various countries, including India, Nepal, Bangladesh, Pakistan, Cuba, Haiti and Senegal, to Ipiales, Colombia, before making their way to North America. There has been an increase in the number of Ecuadorians crossing the Darien Gap, with their number being the second-highest after Venezuelans. The COVID-19 pandemic has exacerbated the influx of Venezuelans fleeing their country, leading to more clandestine smuggling routes to Ecuador.

Extortion and protection racketeering have become major issues in recent years, threatening the liveability of certain areas of the country. Many people fleeing Ecuador cite vacunadores or extortionists as one of the main reasons for their decision to leave. Criminals have become increasingly bold and violent, closing main roads to rob buses or charge tolls, killing customers and owners of local businesses, and even threatening terrorist acts such as placing explosives in gas stations when businesses refuse to pay rackets. Extortion calls are also common, with many originating from the penitentiary system or from criminal actors abroad who identify themselves as members of various dangerous gangs. The government and law enforcement have done little to address this pressing issue, and extortion-related assassinations have become common.

Trade

Although Ecuador had strict regulations of the manufacturing, buying and selling of weapons, illegal arms trafficking has been on the rise in recent years, fuelled by transnational crime structures. The government’s decision to make it easier for civilians to legally buy arms has been met with criticism. This is not only because it is a recognition that the state cannot guarantee the basic security of its citizens, but also because of the high level of corruption that may facilitate the infiltration of legal arms to criminal actors. Most of the circulating firearms are from artisanal local manufacturers, but the market is also transnational. Some weapons acquired by Colombian armed groups travel from the US and Mexico through Ecuador, and drug planes have been reported to enter the country with weapons and money to be delivered to mega-gangs that work for the Mexican cartels. Other sources of arms include Chile and Peru, and the armouries of the public force. The increase in illegal arms trafficking has contributed to a surge in violent deaths, and Ecuador’s murder statistics are the worst in a decade. As many of these deaths are attributed to the confrontation between organized-crime groups, the liberalization of arms possession might not result in enhanced security, but rather exacerbate the levels of violence.

The authorities have seized many counterfeit drugs in Ecuador, with analgesics, vitamins and sedatives being the most common. The local market is also flooded with fake clothing and electronics. These articles are sold openly and in legally registered businesses, as the trade is not seen as illegal. With regard to excise goods, the increase in e-commerce in Ecuador has led to a rise in illicit trade practices such as smuggling. The increase in seizures of illegal cigarettes in 2021 was striking compared to pre-pandemic levels. The trade in illegal cigarettes is usually linked to organized crime, which seeks to launder its proceeds from drug trafficking. It is estimated that more than half of the cigarettes consumed in the country have an illicit origin. Smuggling mainly occurs through clandestine crossings on the northern and southern borders.

Environment

Illegal logging continues to pose a threat to Ecuador, which is both a source of and destination for illegal timber. Organized-crime groups pay regular bribes to police and soldiers to transport illegal timber from Colombia to Ecuador and then disguise its origins before legally exporting it to Peru. Almost half of the timber sold in the country is illegal, with over a million cubic metres sold locally every year. This illegal activity has resulted in the destruction of protected zones, including protected species like mahogany and cedar. Mahogany, in particular, is the most threatened species in the Amazon rainforest. Peruvian loggers cross the Amazon border to cut cedar and mahogany before returning to their country via riverways. However, Ecuador has not yet established a plan with its neighbouring countries to combat this illegal activity, and the government’s response to complaints has been unsatisfactory. In addition, the northern region of Pichincha, renowned as a crucial hub for orchid cultivation, is particularly affected. It has come to light that a significant illicit trade in orchid seeds is thriving in this area, an issue that has not received the attention it warrants.

Ecuador’s diverse wildlife attracts traffickers, with birds, reptiles and mammals being the most trafficked species. Endemic species, such as Galapagos tortoises and land iguanas, are particularly valuable on the international market due to their uniqueness. Although government campaigns and seizures have increased, the problem persists, with traffickers using more sophisticated methods. The normalization of this crime in Ecuador is also a reason why people continue to keep exotic animals as pets and consume bushmeat, particularly in the Amazon region. This has led to many vertebrate species being under threat in Ecuador, largely due to domestic consumption. Furthermore, concerns have been raised about illegal, unreported and unregulated fishing, especially by Chinese vessels, and corruption related to shark fin exports. Directed shark fishing is not permitted, but the trade is allowed if it is a bycatch, providing an opportunity for traffickers to target sharks but declare them under this figure. Excessive bycatch is also a reason for shark meat being commonly found in fish markets and sold to customers as commonly consumed fish types.

Non-renewable-resource crimes in Ecuador are mainly committed by domestic criminal networks, but recently illegal mining has seen the involvement of Colombian mafia-style groups in the border areas. The Cordillera del Cóndor is an area where illegal miners enter Peru to extract gold that they later process on the Ecuadorian side. In the province of Esmeraldas, illegal mining has developed to replace the previously dominant criminal economy of supplying arms to the insurgency of the Revolutionary Armed Forces of Colombia. Additionally, illegal mining in Napo heavily affects rivers and the biodiversity of the Amazon region, where prosecutors have seized substantial amounts of illegal-mining equipment. The smuggling of fuel and liquid natural gas from Ecuador to Peru and Colombia is the most harmful crime for the state due to the subsidies that make the prices of these commodities cheaper than those in other Latin American countries. Criminal networks composed of Ecuadorians, Peruvians and Colombians profit by selling smuggled fuel abroad. Low-level state actors such as police officers, soldiers and other government officials facilitate the transportation of these and other illicit goods. There are also suspicions that high-level authorities may allow the biggest smugglers to transport large quantities out of the country.

Drugs

Ecuador is both a destination and source country for drugs, particularly heroin and cocaine. In the case of heroin, Peruvian opium is transported into Ecuador, while Colombian heroin is exported to the US. Members of the police have been caught tipping off traffickers to their operations, providing security, and allegedly even planning murders with local criminal chiefs. As a result, Colombian micro-trafficking networks have taken over the drug market and established control over deprived neighbourhoods through distribution and security networks. This has created a situation where drugs, sex work and guns are widespread, and shoot-outs are common. Adolescents are particularly vulnerable, with heroin consumption starting as early as at 14 years of age. It is often mixed with other drugs to create a cycle of constant addiction.

In recent years, Ecuador has become a cocaine superhighway due to large-scale cocaine trafficking through its Pacific ports, as well as a growing domestic market. Drug trafficking is largely controlled by Mexican, Colombian and Albanian mafia groups and cartels who team up with local gangs. As a result, Ecuador is one of the main source countries for cocaine to Europe. This surge in drug production has also led to increased homicide rates over the last decade, demonstrating a direct correlation with the amplified flow of drugs. While the current government alleges that the gang war in the country is due to record seizures by authorities, it is rather attributable to the fact that quantities seized in drug operations are becoming larger. Corruption is a major factor, and easy access to precursor and processing chemicals in Ecuador has reduced the risk and manufacturing cost of cocaine domestically. Drug traffickers profit from the absence of government officials in the provinces of Esmeraldas and Sucumbios, where most of the drugs are moved to the ports by road. The result is that the drugs are often stashed among legal cargo. Organized-crime groups also smuggle liquid chemicals, including ether, from Ecuador to Colombia and Peru for cocaine processing. Thus Ecuador is also becoming a major transit country for chemical precursors.

Meanwhile, marijuana cultivation in Ecuador cannot supply the local market, with the most in-demand variety, ‘creepy’, being imported from Colombia. Ecuador is also used as a transit country to smuggle this drug into Peru and Chile. The illegal trade in creepy generates high profits, attracting the interest of international criminal organizations, including Colombian, Mexican and Brazilian mafias. Organized-crime groups dealing with cannabis are particularly active in Esmeraldas, at the border with Colombia. With regard to synthetic drugs, ecstasy or methamphetamine pills are accessible for the local market, and dealers target young consumers, even selling them outside schools. Ketamine from Ecuador is smuggled into Colombia due to its lower price, but there are also reports that 2C-B, containing ketamine, is produced in the Colombian region of Pereira and transported to Ecuador.

Cyber Crimes

Cyber-attacks on private and governmental institutions increased significantly in recent years. The areas most affected include telecommunications companies, the police, the transit authority and private banks. In one case, a ransomware attack hijacked critical information from a state-owned telecommunications company, forcing the government to declare a state of emergency. It is unclear whether this declaration was used to mobilize public funds to pay the ransom, as the case has been shrouded in secrecy. In addition, it is suspected that a cyber-attack on the transit authority was a retaliation by a network of officials colluding with criminals who were issuing fraudulent licences nationwide. With respect to other minor cases, the majority of the attacks reported came from abroad.

Financial Crimes

Financial crimes are a prevalent issue in Ecuador, with Ponzi schemes being the most common type. Police and military personnel have been found to be key participants and even partners in the country’s most notorious financial scams. These individuals see such schemes as an attractive way to invest funds obtained through corruption and bribes. As a result, authorities have issued warnings to the public to be cautious of investing money in suspicious companies or funds that offer unusually high returns, as thousands of Ecuadorians have entrusted their money to illegal money collectors.

Another pervasive form of financial crime in Ecuador is tax evasion, with the country losing almost half of the treasury’s annual tax collections to this crime. In fact, Ecuadorian companies’ non-payment of income tax is among the highest in Latin America. Digital fraud is also widespread, with accountants and scammers operating through social networks. Additionally, corruption within the social security and healthcare systems is rampant, with millions of dollars lost to embezzlement, which has defunded these institutions. Consequently, there is a crisis in social security hospitals, where patients have to buy their own medicines and other medical supplies that should have been provided for free.

Furthermore, cyber-mafias in Ecuador engage in phishing, infecting computers and cell phones through malicious links, creating fraudulent e-commerce websites and hacking social networks.

Criminal Actors

Organized crime is a serious issue in Ecuador, with local and foreign mafia-style groups working together to engage in criminal activities such as drug trafficking, contract killings, extortion, illegal mining and money laundering. Local groups have more moderate members than international organizations, but they facilitate transport and support other criminal activities. While they do not control territory, some have control of the prison system and deploy high levels of violence. The struggle for control of drug- trafficking routes among mafia groups has led to a gang war that has serious impact on society, with terrorist threats becoming more common. The police forces and the military are unable to enforce law, allowing the country to become a hub for organized crime. This war has also led to hundreds of people dying due to constant outbreaks of violence in the prison system.

In addition to local groups, Ecuador is home to several international crime organizations, including those from Colombia, Mexico, Albania and China. Colombian groups control a considerable share of Ecuadorian trafficking routes, including maritime routes along the Pacific Coast, where the state has little control. There is also a growing presence of Balkan crime groups involved in drug trafficking, and their violent and terrorist tactics are being mimicked by local groups in the fight for control of trafficking routes to Europe. Moreover, Brazilian gangs are reportedly interested in expanding their trafficking routes to Ecuador, which could cause a bloody confrontation with the Mexican cartels operating in the region. Asian groups are mostly involved in human smuggling. The presence of these international crime organizations has led to a loss of public confidence in the ability of the Ecuadorian state to control its territory and protect its citizens.

Loose criminal networks operate across Ecuador and are mainly involved in criminal markets such as drug and people trafficking, people smuggling and illegal mining. These groups operate at a provincial or city level, with some violently disputing the drug trafficking market in Guayaquil. Criminal organizations are believed to operate from within the prison system, where they use violence, including extortions and murders. Murder-for-hire rings are also reportedly present and have access to high-powered weapons. Prisons have become the perfect criminal ecosystem for the proliferation of organized crime.

Corruption is rampant in Ecuador, with state actors involved in drug and illegal gold trafficking in criminal markets. Officials ranging from police and military members to judges and prosecutors have been accused of facilitating these activities in exchange for bribes or favours. Some criminal networks have also obtained military weapons, ammunition and explosives through corrupt officials. In the human-trafficking market, corrupt Ecuadorian officials have been reported to be part of organized-crime groups, serving as informants on the occurrence and timing of law enforcement operations and facilitating operations by procuring falsified identity documents. This resulted in victims’ lack of confidence in the police and a reluctance to report potential cases.

Organized crime in Ecuador predominantly launders its revenue through the construction and commerce sectors. Real estate developers and construction companies accept resources from illicit activities to fund large housing, office and infrastructure projects. Despite the impact of the COVID-19 pandemic on the economy and the real estate sector, the construction boom in the main cities of the country did not stop. Other legitimate businesses used to reinvest illicit funds are hardware stores and car dealerships. Pseudo-cooperatives for savings and credit have also been established in the southern provinces as mechanisms for money laundering, with some found to be part of criminal networks worth millions of dollars.

Leadership and governance

The current government’s lack of leadership has led to a political stalemate and democratic backsliding. The government’s political capital has been drained, leaving it with virtually no allies and rejection from the majority of the population. In fact, the president has one of the lowest approval ratings in Latin America, as demonstrated by his loss in the referendum he called against organized crime. The current government’s failure can be attributed in part to the de-institutionalization of the state, leading to all areas suffering from poor planning and execution despite having adequate funds. The lack of capacity of the presidential cabinet has led to a deterioration of law enforcement and public services, which has been exploited by mafia groups to gain territory. Currently, the country is experiencing a sharp rise in homicide rates, ending a decade-long decrease; rampant extortion and an increasing terrorist threat. The pressure to reduce the size of the public sector in Ecuador has led the government to eliminate important institutions. Ecuador is the only country in the region without a ministry of justice, and the public planning entity, which was disbanded under the previous government, has not been adequately re-institutionalized by the current government, leading to poor public policies and investment. Furthermore, the slow response from the government to corruption cases linked to the infiltration of the drug-trafficking mafia into the political elite has worsened already low public trust in state institutions. The capability of public institutions responsible for upholding transparency and accountability has been diminished as a result of allegations involving money laundering and bribery, along with complications in the selection process of new officials. Access to information in Ecuador is also poor.

Despite Ecuador signing and ratifying numerous international treaties and conventions to combat organized crime, as well as receiving support from the US, including capacity-building courses, equipment and funding from the Bureau of International Narcotics and Law Enforcement Affairs to strengthen its fight against narcotics trafficking and transnational crime, there are still areas that need improvement. Ecuador is yet to ratify the Arms Trade Treaty, and some of its extradition agreements need to be updated to be more effective. Although the country has adequate laws to fight organized crime, resources to enforce them are inadequate.

Criminal justice and security

The judicial system in Ecuador lacks independence, which limits its ability to effectively investigate corruption and money laundering, thereby weakening the rule of law. The judiciary system is seen as facilitating crime, as many judges have freed criminals, mafia leaders and murderers by abusing loopholes in jurisdiction matters, allowing any judge to rule on cases not belonging to their cities. Moreover, prosecutors have also been accused of presenting poor cases, leaving judges with no option but to free criminals. Police officers have complained about the judiciary thwarting law enforcement efforts. The prison system in Ecuador is highly dysfunctional, with the state having little to no control over different prisons, which have become hubs of criminality. The penitentiary crisis in Ecuador is currently at its worst in history, with hundreds of people murdered due to conflicts between gangs. Overpopulation of prisons is another factor fuelling violence.

The national police in Ecuador has a unit dedicated to combating organized crime but faces challenges due to limited resources, bureaucratic delays and frequent rotations of specialized police. Despite once being recognized as one of the most professional and well-paid institutions in Latin America, the current and previous government have allowed law enforcement infrastructure, vehicles and equipment to deteriorate significantly. Additionally, the reduction in budget and number of community policing units throughout the country have enabled criminal groups to take over certain areas. The national police has lost credibility following high-profile crimes in which active police officers have been involved.

The northern border with Colombia remains challenging to police due to the jungle terrain. The Putumayo-Caqueta region has the largest area of coca cultivation, which is affected by the presence of national illegal-arms actors and transnational criminal groups. Due to its position between Colombia and Peru, two major cocaine producers, cocaine trafficking is taking over the country as it serves as the main transit for consumer countries due to the retreat of the state. Its position and dollarized economy also make Ecuador a popular destination for drug traffickers and cartels to launder money. Ecuador has also become a popular target for cyber-attacks and is considered one of the most vulnerable countries to these crimes in the region. The government of Ecuador is poorly prepared for cyber-attacks, and investigations have not yielded any results. The lack of capacity for prevention and protection is the main reason for this.

Economic and financial environment

Ecuador has had an anti-money laundering law in place since 2005, with prison sentences ranging from one to 13 years, depending on the sum of money laundered and the level of involvement of the person being sentenced. Despite Ecuador not appearing on a money-laundering blacklist, there is a high risk of this crime being perpetrated and used for terrorist financing. Despite numerous complaints being made, few cases result in conviction. Investigations move at a slow pace, with preliminary investigations of money laundering lasting up to two years, occasionally even longer, when the laundering amounts are high and involve companies. This is worsened by the lack of funding provided by the government, which has been reduced in recent years. Pichincha and Guayas are the provinces where most of these cases have been reported. The economic sectors most frequently used for criminal activities include mining, real estate, car sales, banking, tourism and the NGO space.

Ecuador’s economic growth rate has decreased due to a decline in state investment and expenditure. To address this, the government has acquired loans from the IMF and the World Bank, leading to economic reforms such as tax cuts and loan incentives for entrepreneurs. However, despite the current discourse on fiscal responsibility, the public debt has reached historic levels, putting at risk the economic well-being of the national economy and future governments. Despite these challenges, international risk assessment agencies still classify Ecuador as a moderate-risk country.

Civil society and social protection

Ecuador established a national system in 2014 to protect and assist victims and witnesses. However, the programme is resource-constrained, and judicial police officers provide this protection instead of military soldiers or private security guards doing so. This has led to complaints that the assistance is conditional on the level of participation of the victims or witnesses in the judicial process. Additionally, the system does not comply with international accessibility standards, and eligibility for assistance depends on subjective criteria applied by public officers.

The police occasionally launch prevention campaigns against drug trafficking, stolen goods purchase, human trafficking, football stadium violence and usury, among others. They work with communities through community police units operating across the country. However, the closing of several of these units, ostensibly due to efficiency concerns, has significantly weakened overall prevention strategies.

The Ecuadorian government has regulatory power over NGOs, including the authority to dissolve them for participating in politics or for activities that diverge from their stated goals. Despite advancements in this area made by recent administrations, observers still contend that the executive retains excessive regulatory power over media and NGOs due to regulations implemented during the former administration. The media plays an important role in investigating crimes, especially corruption involving the state. However, the government does not guarantee freedom of the press in practice. Journalists who cover security, judicial and police sources face threats in viral videos, phone calls and aggressive messages. Esmeraldas, a hub for drug-trafficking operations, illegal logging and mining, and various other crimes, is an example of a location where the local press is unable to expose thousands of cases due to intimidation by and fear of criminal organizations.