Chilean security expert warns of 'institutional penetration' by organized crime

A money laundering investigation targeting the headquarters of Banco Santander in Santiago has brought renewed focus to Chile's security challenges, particularly the infiltration of key institutions by organized crime. The case, involving a high-ranking bank executive and networks linked to organized crime, has experts warning of a deeper phenomenon.

Lawyer and former Undersecretary of the Interior, Felipe Harboe, stated that such cases are not isolated incidents but part of organized crime's evolving strategy in Chile. "Organized crime entered Chile some time ago, not just in territorial control, but also in money laundering," he explained. Harboe noted that funds from illicit activities like extortion and drug trafficking inevitably enter the financial system through banks, transfer companies, or fintechs using cryptoassets. He believes the Santander case signifies a more advanced phase: institutional penetration, predicting more such situations across various institutions.

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It is evident that there was a manifest error. Less than three months in, the President himself recognizes that the person in charge was not adequate.

Harboe outlined the progression of organized crime in Chile: initial establishment, followed by territorial control, and now institutional penetration. He emphasized the transnational nature of these operations, with crimes coordinated from abroad, necessitating enhanced intelligence capabilities for Chile. "Today crimes are coordinated from prisons abroad. That forces Chile to sophisticate its intelligence capacity," he added.

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For some time now, organized crime has entered Chile, not just in territorial control, but also in money laundering.

Regarding homicide rates, Harboe expressed caution about interpreting a decrease as solely positive, questioning whether it reflects improved policies or territorial control by criminal gangs. He also highlighted the rise of contract killings (sicariato), which breaks the traditional victim-offender relationship and increases impunity. Harboe estimates that Chile's homicide resolution rate has fallen to around 65-70%, leaving a significant portion of cases unsolved.

Politically, Harboe was critical of the government's security management, particularly early in the administration. He described the initial appointments as a "manifest error," noting that the President himself acknowledged the inadequacy of a key figure within three months. Harboe argued that the administration lacked a robust security plan, despite campaign promises, and that citizens are now demanding action.

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Today crimes are coordinated from prisons abroad. That forces Chile to sophisticate its intelligence capacity.