Transnational Crime Concerns in Chile
Jack D. Gordon Institute for Public Policy
Chile, a country increasingly in the spotlight for transnational crime, grapples with a range of illicit activities that impact its society and economy. As a critical transit, source, and destination point, Chile faces significant challenges in human trafficking, with inadequate statistics, limited investigations, and lenient sentencing undermining efforts to combat this crime. Additionally, the country is plagued by human smuggling, extortion linked to drug trafficking, and counterfeit goods, further complicating its security landscape. Despite being a hub for various criminal activities, including small arms trafficking and illegal logging, Chile's government has shown a commitment to tackling these issues. However, resource constraints, corruption, and the evolving nature of transnational crime pose ongoing challenges, highlighting the need for comprehensive and collaborative solutions to strengthen the country’s response to organized crime.
Major Crime & Areas of Criminal Concerns:
Human Trafficking & Smuggling (trata de personas)
Chile serves as a significant source, transit, and destination country for human trafficking, affecting a diverse group of victims, including men, women, children, and adolescents. These individuals are exploited for both sexual and labor purposes across various sectors such as mining, agriculture, construction, street vending, hospitality, restaurants, garment manufacturing, and domestic service. In recent years, human trafficking in Chile has surged, with traffickers exploiting border openings and unauthorized crossings to smuggle individuals into the country under false pretenses. This growing issue has drawn the concern of international organizations, particularly regarding the vulnerability of domestic and foreign victims, including women, children, and migrants from Asia and Latin America, such as those from Bolivia, Colombia, Paraguay, and Thailand. Children in protection centers are at risk of abuse and trafficking, while adults and children alike are exploited in sectors like mining, agriculture, and construction. Immigrants from China, Haiti, and Colombia are particularly susceptible to sex trafficking and forced labor. Additionally, foreign traffickers frequently collaborate with Chilean counterparts, exacerbating the problem. Stricter immigration laws have further heightened the vulnerability of migrant populations, leading to increased exploitation by transnational criminal organizations, especially of foreign women and girls in both sex and labor trafficking.
Human Smuggling
Criminal networks with international ties are operating in the country, using various methods to bring individuals into Chile, including unauthorized border crossings, fake travel agencies and leased flights. Domestic actors profit substantially from these markets, making it difficult to combat the problem effectively. The COVID-19 pandemic and migration crisis have only worsened the situation, particularly for vulnerable populations such as Venezuelans, Peruvians and Haitians
Extortion and Protection Racketeering
Closely related to drug trafficking--Narco-extortion, in which gangs kidnap members of rival gangs or their relatives for money or drugs, is a common tactic. Extortion complaints have declined in recent years, but protection racketeering still occurs in prisons, where older or more dangerous inmates demand money from the families of new inmates in exchange for protection. Additionally, criminal gangs involved in drug trafficking threaten legal businesses in border regions for protection, which is a growing concern due to the expansion in the cocaine trade and human smuggling.
Counterfeit Goods
Majority if those confiscated in port inspections come from China. Additionally, there has been a rise in counterfeit brands being sold in the country, partly due to the Venezuelan diaspora. As Chile has one of the lowest ratios of customs officers in the world, it is challenging to monitor all counterfeit products entering the country. Moreover, the illegal trade of excise goods, particularly cigarettes, is a growing issue in Chile. Contraband cigarettes are smuggled into the country by sea from China and India and by land from Bolivia and Peru. Despite the considerable number of contraband cigarettes seized in 2021, the market continues to expand in the country. Northern regions are particularly affected by the illicit trade in these products.
Source: The counterfeit handbags and wallets seized by Customs at the Customs Cargo Examination Compound, River Trade Terminal, Tuen Mun on Jan. 29. (Hong Kong Customs photo)
Small Arms Trafficking
Chile is a notable player in the small arms trade, both importing and exporting firearms. Although it is not as problematic as some other Latin American countries, the issue of small arms trafficking is becoming an increasing concern. Recent trends show a rise in the confiscation of illegal or unregistered weapons, which suggests potential corruption and a growing problem with firearm-related crime. In Chile, criminals predominantly favor pistols, revolvers, and shotguns, with an emerging trend towards the use of modified blank guns. Despite not being a major hotspot for arms trafficking compared to its regional counterparts, Chile has seen a recent uptick in such activities. The primary crimes associated with this surge include illegal firearm possession and drug trafficking. Often, illicit arms are imported from the United States, particularly from Texas and Florida, through shell companies. Chile's geographic proximity to the triple border of Paraguay, Argentina, and Brazil has turned Iquique into a significant route for arms trafficking into neighboring countries plagued by major organized crime problems.
Source: Gerson Guzmán D.
Illegal logging
In recent years, Chile has faced significant deforestation, resulting in the loss of thousands of hectares of native forests. The primary drivers of this deforestation include real estate expansion, agriculture, cattle ranching, and the production of paper pulp from exotic trees. Despite these pressing issues, Chile has a limited number of prosecutors dedicated to environmental crimes, and much of the country’s forested land is privately owned, which hampers efforts to combat illegal logging. The regulatory agency responsible for overseeing environmental protection is underfunded and has been accused of collusion with economic groups. Additionally, the narrow legislative definition of forests allows any land without a specified number of hectares of tree cover to be used for economic activities, effectively rendering many environmental crimes legally permissible in Chile.
In parallel, illegal gold smuggling into Chile remains a persistent problem, particularly from Peru, where illegal mining is widespread. The smuggled gold is often intended for laundering and illegal export to third-party countries, such as the United Arab Emirates.
Photo Credit: Carmen Critelli
Wildlife Trafficking
While the COVID-19 pandemic and economic crisis have reduced wildlife trafficking, recent seizures and the number of rescued animals requiring rehabilitation indicate a worrying trend. Demand for birds, which are easier to hide, is the main driver of illegal trade in exotic animals. The animals are smuggled into the country through unauthorized passages and hidden in various ways, often subjected to physical abuse when taken across borders illegally. The market for illegal trade in exotic animals is lucrative and is an incentive for small criminal organizations with connections in source countries, mainly Brazil and Bolivia. Lax sanctions for these crimes do not deter criminals from engaging in them.
Narcotrafficking
The market for heroin in Chile remains small, with few cases of:
Heroin trade being detected: However, there is evidence that the same mechanisms used to import other drugs are used to import heroin from other countries. On the other hand, Chile continues to be a major destination and transit country for cocaine trade due to its strategic location next to two of the world’s largest cocaine-producing countries, Peru and Bolivia, and because of growing domestic consumption. In fact, Chile is one of the top markets for cocaine consumption in Latin America. The porosity of the borders with Bolivia and Peru, scarce state and police control, and the extensive Chilean coasts allow drug traffickers easy access. Additionally, cocaine shipments destined for Europe, the US, Oceania and Asia are re-exported through non-traditional ports along the Chilean coastline. Chile is also a major supplier of controlled substances, such as potassium permanganate, used in cocaine production.
Marijuana: Chile has one of the highest rates of marijuana consumption in Latin America. Seizure data shows that Paraguay is responsible for most of the cannabis smuggling into the country, but there has been an increase in the popularity of Colombian ‘creepy’, and domestically grown marijuana is also part of the market. In recent years, locally produced marijuana with a higher THC content has been replacing Paraguayan imports due to a reduction in drug supply during social protests and the COVID-19 pandemic. Despite the rise in seizures, domestic demand for cannabis remains high, with the value of the market being among the highest of the criminal markets.
Synthetic drug trade: Chile mainly comes from European countries, such as the Netherlands, Germany and Spain, but also from Argentina and Colombia. The target demographic for these drugs is young adults, mainly at electronic music parties. While initially sold to people of high socioeconomic status, adulterations of the drugs have allowed the substance to reach a much more diverse group of customers. The synthetic drug trade in Chile has not been associated with violence or clear evidence of criminal networks, with most seizures involving individuals possessing or transporting the drug independently. One synthetic drug that has recently attracted attention is 2C-B, a ketamine-based psychedelic drug that is also known as ‘pink cocaine’ or ‘tusi’.
Cyber Crimes
Chile has recently experienced a surge in cybercrime, with millions of cyber-attack attempts occurring in recent years. However, the country has also become more aware of cyber-security, with a growing culture of awareness among both enterprises and individuals. As a result, Chile is now the country in South America least likely to experience a cyber-attack and is considered moderately resilient in terms of cyber-security. Despite this progress, experts warn that Chile remains a vulnerable country due to its growing digital development.
Financial Crimes
Chile has experienced a surge in financial crimes, including Ponzi schemes and tax evasion. The Investigations Police of Chile (PDI) has warned of the growing number of these scams, known locally as mandalas, células, flores or tejidos. These schemes offer unreal profitability percentages under the guise of social work. To address financial crime, the Chilean government has introduced measures to increase the responsibility of companies in preventing these crimes. Despite efforts the country remains vulnerable to financial crime due to the high profitability and low risk of detection associated with such crimes.
Major Criminal Actors
Determining the number of mafia-style groups operating in Chile is challenging as many remain anonymous until they are brought to justice. The local drug-trafficking networks operate differently than traditional mafia-style groups. Unlike traditional mafia-groups, they do not have high levels of organization and membership, rather much of the violence is by foreign groups entering the nation. Chilean organized crime mainly consists of decentralized criminal networks operating in marginalized areas, that is expanding into the northern region.
Foreign Actors
Mexican Sinaloa and the Jalisco New Generation Cartels and Colombian, Cartel del Golfo, cartels have penetrated Chile’s illicit drug market. The geographic location of Chile makes it a transit location for these cartels to ship to Europe. Mexican cartels have started constructing facilities for the cultivation of highly concentrated THC cannabis, and are largely operating in Santiago, Chile. Venezuelan mafia groups are obstructing the smuggling of individuals into Chile and have been reported to charge them a toll to use the illegal crossing to Colchane, killing those who refuse.
Italian ‘Ndrangheta
Italian police said Thursday they had seized over 2,000 pounds of pure cocaine that was hidden in a container of frozen mussels from Chile
Image by donieve from Pixabay
Has operations in Chile, according to officials, using Italian restaurants and pizzerias as covers for their illicit activities and profits. Each clan essentially operates on their own in their respected region but report and work for the larger organization, little is known about their exact whereabouts and activities in Chile.
Los Pulpos
The leader of this Peruvian gang in Chile is Jhordy Rojas Seguil, who fled from Trujillo, Peru after murder accusations in 2012. The group is largely based in Santiago where Rojas Seguil allegedly led the organization in Chile to establish a criminal syndicate of crimes including extortion, kidnapping and contract killing. In addition, the Prosecutor's Office, states cites in the Yungay neighborhood have been violently taken over. They have incited fear among merchants and businessmen in the Metropolitan Region, for protection fees. The Office of the Prosecutor for Criminal
(La Tercera, 2024)
- Analysis and Investigative Focuses of the North Center (SACFI), in Santiago, details that the first complaints of extortion of commercial premises of the gang were registered in 2021.
- Associated Gangs: Los Destructores de Lima, La Jauría and La Nueva Generación. They have threatened locals for monthly payments of between $300 thousand and $2 million pesos for protection.
- Vulnerable Groups: Immigrants are three times more likely to be killed than actual residents due to their greater vulnerability. Fear of reporting crimes in combination with a lack of a support system, migrants are most suscepible to various forms of abuse and ranges of crimes.
Tren De Aragua
Clan in Chile is Los Gallegos
Where:
- Most notable presence around Pisiga, a city along Chile’s northern border with Bolivia. Northern border towns of Arica and Tarapacá, then later into the cities of Santiago and Concepción
The data revealed a rise in kidnappings associated with organized crime, particularly those linked to settling criminal disputes, extortion, or acts of revenge. Although these incidents made up only 4.5% of all kidnappings in 2022, the report indicated that this proportion grew to 12.4% in the following year.
- Involved in migrant and drug trafficking routes through Bolivia between Peru and Chile
- They engage in opportunistic movement, following migration patterns and cities with economic mobility, “las plazas”.
- Then their publicized brutality makes bigger impact, instills more fear from the pop and establishes power over “potential competitors”
- Migrant in chile said they operate out of houses to torture, murder people burying and burning them alive
- Tren de Aragua expanded to Chile in 2021, and has since been implicated in kidnappings, murders, human trafficking, sexual exploitation and torture. Here are the signs of its presence in Chile and the efforts to dismantle the violent criminal organization.
Others
São Paulo's First Capital Command (PCC) has been present in Chile since 2022 and is led by Juan Bayron Nataly Santander, alias "Pelado”. The gang has been linked to the Tren de Aragua and seeking to expand their growing their arms and
Private-sector actors are mostly involved in money-laundering activities, forming front, shell and paper companies. The financial products most used for laundering money are cash, bank accounts and wire transfers. The most vulnerable businesses in the money-laundering process are notaries, automobile companies, legal accounting services, retailers, e-commerce merchants, banks, real estate agencies and exchange houses. There are official warnings of corruption among state facilitates criminal markets, especially near the borders. Concerns of involvement in drug trafficking, robbery and other criminal activities.
Role of Chinese Organized Crime
Chile has been attracting a Chinese criminal gang, benefiting from the country's marijuana trade and close trade ties to China. The main group would be the Fujian Bang clan from
Migration: Over 200 Chinese migrants have been illegally brought to Chile since 2021, after escaping from Argentina, Brazil, or Bolivia. They’re required to each pay anywhere from $2,500 and $8,000 each.
Exploitation: Migrants forced into sex exploitation at entertainment venues or into labor as growers in indoor marijuana plantations. A parallel criminal investigation found that a string of these plantations and entertainment venues were owned by families from the southern Chinese province of Fujian, known as the Bang clan.
Why Chile: Chile is ranked third in the world for marijuana use, it has an appealing marijuana market that appeals to these illicit groups as the drug remain illegal, warranting a demand for large-scale marijuana cultivation.
Previous Efforts: The Southern Dragon Dynasty was a two-year operation that brought down the "Bang de Fujian" in Chile, involving the capture of thousands of marijuana plants, weapons, and cash. The perpetrators, mostly low-profile individuals, frequented Chinese-owned karaoke bars for drug dealing and prostitute purchases.
Economic and financial environment
The rise of illicit criminal groups throughout Chile makes it susceptible to increasing forms of money laundering and illicit financial flows into the country. The main source is from drug trafficking but also unregulated online gambling, and the rise in a multitude of illicit activities: murder for hire, illicit firearms trafficking, extorsion, human trafficking, sexual exploitation and more.
The private sector is a significant contributor to the Chilean economy, great financial investments deriving from mining, finance/insurance, energy, telecommunications, chemical manufacturing and wholesale trade.
Civil and Social protection
Though the country has made great efforts to for support and protection for victims, there remains concerns about inadequate funding for victim assistance, especially for children and males. Suggest evenly dispersing support services or developing tailored approaches for each region that targets vulnerable populations. Chile’s strategies to combat organized crime, accounted for the role of poverty reduction and money laundering, human trafficking, and drug trafficking. The National Plan against Drug Trafficking has led to increased seizures, but no national policy against organized crime exists. The Chilean government has established a civil society council to involve civil society in drug consumption prevention and rehabilitation policies.
Applying the DIME Framework
The DIME framework, which stands for Diplomatic, Information, Military, and Economic, is a strategic approach used to analyze and address national security and international relations issues. By applying this framework to Chile's transnational organized crime, we can explore how different instruments of national power can be leveraged to counter and mitigate the effects of these criminal activities.
Diplomatic
International Cooperation | Extradition Treaties | Capacity Building and Training |
|---|---|---|
Chile can strengthen diplomatic ties with neighboring countries and international organizations to enhance collaboration in combating transnational organized crime. This might involve participating in regional security alliances, signing mutual legal assistance treaties, and fostering joint investigations. | Diplomatic efforts can be directed towards negotiating extradition treaties with countries where organized crime leaders or members may flee. This would ensure that criminals can be brought back to Chile to face justice. | Chile can seek international partnerships to gain technical assistance, training, and resources from countries with more experience in combating organized crime. Collaborative training programs can enhance the capabilities of Chilean law enforcement and judicial authorities. |
Information
Intelligence Sharing | Public Awareness Campaigns | Cyber Surveillance and Monitoring |
|---|---|---|
One of the critical strategies in combating transnational crime is the effective sharing of intelligence. Chile can work with other nations and international law enforcement agencies like INTERPOL to share information about criminal networks, trafficking routes, and modus operandi. | Information campaigns can be launched to educate the public about the risks and signs of organized crime activities, such as human trafficking and drug smuggling. Raising awareness can help communities recognize and report suspicious activities. | With the rise of cybercrime linked to organized crime, Chile can invest in cyber capabilities to monitor online activities, gather intelligence on criminal networks, and track illicit financial transactions. |
Military
Border Security | Joint Operations | Training and Support |
|---|---|---|
The military can play a critical role in securing Chile's borders to prevent the trafficking of drugs, weapons, and humans. This may include deploying military units to border regions, enhancing patrols, and using advanced surveillance technologies. | Collaboration between the military and law enforcement agencies can lead to more effective operations against organized crime. Joint task forces can be established to dismantle criminal networks and carry out large-scale operations. | The military can provide specialized training and support to law enforcement agencies, such as in areas of tactical response, counter-terrorism, and intelligence gathering, enhancing their ability to combat organized crime effectively. |
Economic
Targeting Financial Networks | Economic Sanctions | Economic Alternatives |
|---|---|---|
Organized crime relies heavily on financial networks to launder money and fund their operations. Chile can implement stronger financial regulations, improve monitoring of suspicious transactions, and collaborate internationally to track and freeze assets linked to criminal organizations. | Imposing economic sanctions on individuals, companies, and entities known to support or be involved in organized crime can disrupt their operations. This may include asset freezes and travel bans. | Providing economic opportunities and development programs in regions vulnerable to organized crime can reduce the allure of criminal activity. By promoting legitimate employment and economic growth, Chile can address some of the root causes that drive individuals into organized crime. |
By using the DIME framework, Chile can develop a multi-faceted approach to combat transnational organized crime. Each element—diplomatic, informational, military, and economic—provides a unique set of tools and strategies. When applied collectively, these approaches can help disrupt criminal networks, reduce crime rates, and enhance the overall security and stability of Chile.
