As financial crimes evolve with technology, cryptocurrencies and digital assets are increasingly used to facilitate money laundering across Latin America. In the wake of mounting international sanctions following its invasion of Ukraine, Russia is actively seeking alternative markets and financial channels to circumvent sanctions, with Latin America and the Caribbean regions emerging as effective conduits.
These are some of the key conclusions from the panel discussion on Money Laundering during the 10th Annual Hemispheric Security Conference (HSC) in Miami on May 13, 2025. Organized jointly by the Florida International University (FIU) and the Center for the Study of Democracy (CSD), and featured a number of renowned regional experts including Martin Vladimirov, Director of the Geoeconomics Program at CSD; Amanda Gore, Director of the Center for Global Affairs (C4GA); Guillermo Lagarda, from the Inter-American Development Bank; Angela Bruhjell, Director of Analysis at C4ADS and Nicholas Schumann, from the US Financial Crime Framework at HSBC.
Over 125 major Russian companies, many of which are under sanctions, are operating globally through entities registered in Caribbean offshore tax havens. Meanwhile, countries such as Brazil, Argentina, and Mexico have emerged as key buyers of Russian oil, with some shipments reportedly routed through Venezuela and the Bahamas aiming to obscure their origin and bypass the G7+ ban on Russian oil imports.
Panelists raised alarm over the intersection of financial crimes, illicit commodities, and state-sponsored sanctions evasion. Gold sales, for instance, were linked to narcotics trafficking networks, illustrating how illicit financial flows are now moving faster than most institutions can track or prosecute. Intermediaries, which often operate in loosely regulated spaces, are being used strategically to conceal ownership and maintain corrupt financial channels.
Special attention was given to the use of shell companies and offshore accounts, and tactics used by rogue states to evade sanctions.
The panel stressed that closing these gaps requires not only technical oversight but also sustained political will. Legal frameworks to combat money laundering and sanctions circumvention exist across Latin America, but panelists emphasized that enforcement remains inconsistent. High-level political commitment is essential to strengthen institutional resilience. Information-sharing partnerships among democracies were described as crucial to preventing illicit actors from exploiting regulatory blind spots.
Panelists discussed how advanced technologies like artificial intelligence and big data analytics are reshaping enforcement, and how regulatory bodies such as the FATF and national governments are responding to this shifting threat landscape.
To confront these evolving challenges, speakers called for a coordinated international response. This includes building digital and investigative capacities, harmonizing regulatory regimes, and developing unified international standards for tracking and disrupting financial crime. Closing the global enforcement gap, they argued, depends not just on better data, but on collective resolve to act on it.
