Narco cash laundered into large-scale agriculture in Central America

16.05.2017

Seized cocaine bales being offloaded at Coast Guard Base Miami Beach Photo: Creative Commons

new study comparing forest loss and cocaine busts supports the theory that drug money is being laundered into large-scale agriculture in Central America.

The study, published this week in Environmental Research Letters, estimates that forest loss linked to narco-trafficking may account for between 15 and 30 per cent of forest loss in Nicaragua, Guatemala and Honduras in the past decade.

While some attention has been given to deforestation specifically for the cultivation of coca, the study tested the theory that some of the US$6 billion in illegal profits are invested in agriculture as a means to launder it into the “legal” economy.

Previous studies have found that traffickers invest in cattle ranching, palm oil plantations and the timber trade. The new study hypothesised that agriculture linked to the drug trade could be distinguished from smallholder farming due to the “high degree of illicit capitalization and related ability to monopolize rural land and labor, yielding anomalously large, remote, and rapid forest clearing”.

The authors conclude that “drug trafficking is likely to operate synergistically with other drivers of land change that hasten forest loss, particularly within remote frontiers where illegal land grabs and consolidation are unimpeded by weak governance structures”.

The study found that probable “narco-driven” forest loss has been concentrated in areas of high conservation importance. “[W]e found that concentrations of forest loss likely related to drug trafficking are within many of the most culturally and biologically diverse and isolated regions of Central America”, the authors wrote.

More from Blog

Better Cotton / Certification scheme ignores the reality of land grabbing in the Cerrado

Continue reading
EU Omnibus / U-turn on corporate accountability

Continue reading
Open letter / Civil society calls for robust benchmarking under deforestation law

Continue reading
FSC / Certification scheme is in talks to certify Indonesian paper giant 

Continue reading
EUDR / European Commission wants to re-fuel the bulldozers

Continue reading
Planned clearance / Threatened destruction of orangutan habitat underlines importance of the EUDR

Continue reading
Under threat / The EU must stand firm to help protect the world’s forests

Continue reading
Sanctions / EU finally bans Belarusian furniture

Continue reading
Revealed / Former Better Cotton employee exposes scheme’s fundamental flaws

Continue reading
Sanctions breached / Evidence of laundering of finished Russian plywood found

Continue reading

Secure contact

Share sensitive information with Earthsight safely and anonymously.

E-mail us