Wednesday, February 24, 2010

Ecuador's Money Laundering Problem?

So, on the one hand, Correa argues that Ecuador is on a money laundering list because of the country's ties to Iran.  (Yahoo)
Ecuador's inclusion on an international list of nations accused of lagging in the fight against money laundering is a hypocritical punishment for its relations with Iran, Ecuador's president said on Saturday.
"What arrogance! And why? Because we have relations with Iran. That's it," Rafael Correa said at his weekly town hall meeting. "This is imperialism in its most base form. ... This has nothing to do with the struggle against money laundering."

On the other hand and in the same breath, Correa questions why Brazil isn't included on the list as it also strengthened ties with Iran under Lula.
Drawing cheers from his audience, Correa asked why nobody had mentioned Brazil, which also has growing ties with Iran and hosted President Mahmoud Ahmadinejad late last year.

While obviously not overwhelming evidence, doesn't that lead one to believe that it takes more than relations with Iran to get on the Paris-based Financial Action Task Force list?


  1. Just to be the devil's advocate here, perhaps it has something to do with the relative size of the Ecuadorian fossil fuel reserves versus the Brazilian reserves. The comparison is sort of like Mercury versus Jupiter. One really doesn't want to overly irritate one's future major supplier of go-juice now does one?

    Or it could be that Ecuador has a gazillion Dollar judgment against Chevron and Hunt Oil Companies for their killing of thousand of indigenous people with their reckless and environmentally catastrophic drilling in the upper Amazon. Maybe?

    Or that Correa stared down the IMF on those usurious bonds that all those neoliberals decided were so good for their balance-sheets and to Hell if they kept the country in grinding poverty?

    Lotsa reasons, no?

    Or it could be that Ecuador is a money laundering country.

  2. All possibilities. After perusing the website, I think that the reason is much simpler. FATF doesn't include Brazil on its list of money launderers because Brazil is a member of the intergovernmental organization.

    It's unlikely that they are going to take part in an organizational decision that criticizes Brazil.