In July 1989, the leaders of the economic powers assembled at the G7 Paris summit decided to establish a Financial Action Task Force (FATF) to counter money laundering as an effective strategy against drug trafficking by criminal ‘cartels’. However, since the inception of the international anti-money laundering (AML) regime there is a growing awareness that the regime is not working as well as intended.
Relationships with countries racked by drug violence and organized crime should focus more on economic development and less on the endless battles against drug traffickers and organized crime capos that have left few clear victors. The countries, Mexico in particular, need to set their own course on security, with the United States playing more of a backing role. That approach runs the risk of being seen as kowtowing to governments more concerned about their public image than the underlying problems tarnishing it.
There was a lot of drug-war hand-wringing in the U.S. leading up to President Obama’s visit to Mexico. That’s because Mexican President Peña Nieto is in change-the-conversation mode: he wants Washington to focus less on his country’s awful drug violence – some 60,000 narco-related murders in the past seven years, with little sign of abating – and more on its robust economic potential. The fear in some Washington circles is that Peña Nieto's Institutional Revolutionary Party (PRI), which in its dictatorial 20th-century heyday was every drug lord’s cuate, or best buddy, is putting the fight against Mexico’s vicious cartels on the back burner.