AA
Share
“State-embedded actors play a fundamental role in organized crime in Nicaragua,” concluded the third Global Organized Crime Index for 2025. The report, which analyzes 32 variables grouped into three categories, also states that “Nicaragua is among the most corrupt countries in Latin America.” A total of 193 countries were evaluated.
These are some of the findings from experts at the Global Initiative Against Transnational Organized Crime, which produced the Index. Looking at the data over time, the numbers show that Nicaragua has improved very little since the score of 6.06 in the 2021 report and 5.72 in 2023.
Now, the 2025 Index gave the country a score of 5.73 (10 being the worst), which places us as the third best rated in Central America, a region where only Belize (4.97) and El Salvador (5.45), get better grades. In fourth place is Costa Rica (5.90), with Guatemala in fifth place (6.77); Panama in sixth place (6.93), and Honduras in last place in the isthmus, with 7.10.
However, there is little reason to celebrate that third place, in light of the document’s description of how the country handles three elements: criminal markets, criminal actors, and resilience. To define Nicaragua’s status in the criminal markets section (5.27), they analyzed the country’s situation in terms of drug, arms, and human trafficking; extortion and protection rackets; cybercrime; illicit trade; counterfeit goods; and financial crime.
In terms of criminal actors (6.20), it analyzes mafia-type groups, criminal networks, and actors integrated into the State, as well as foreign actors, those operating from the private sector. In terms of resilience (2.00), it analyzes governance and leadership, international cooperation, government transparency and accountability, among others.
Centralized authoritarian system
“Nicaragua operates under a highly centralized authoritarian system, and state initiatives against organized crime are considered only symbolic. Over the years, the ruling Sandinista National Liberation Front has consolidated its control over state institutions through widespread repression, political purges and electoral manipulation,” the report states.
It adds that “international organizations and human rights groups have repeatedly accused the Nicaraguan leadership of direct involvement in organized crime, especially drug trafficking, which is allegedly facilitated through government-controlled institutions“.
The conclusion of the drafters of the document is that “high-level corruption linked to the political elite permeates the entire state apparatus, raising concerns about political attacks on individuals and regulatory bodies.”
“The Ortega-Murillo Administration has consolidated power over state institutions, the media, labor unions, and the private sector, facilitating unchecked corruption. The lack of independent oversight has allowed large-scale embezzlement of public funds without consequences,” the document concludes.
The Index was supported by the European Union, the U.S. Department of State, and the Government of Norway, implemented by the Institute for Security Studies and INTERPOL, in affiliation with the Global Initiative Against Transnational Organized Crime (ENACT).
The more crime and corruption, the less development
When asked by CONFIDENCIAL, the economic researcher Enrique Sáenz said that “this characterization confirms the nature of the regime imposed by the dynastic dictatorship: it is a mafia state.”
He pointed out that crimes have direct victims (those who suffer the physical impact of the crime) and indirect victims, who are often not very visible.
Projecting the image of a mafia state damages the investment climate, hinders job creation, lowers competitiveness, and prevents improvements in people’s living conditions. Corruption diverts public resources that could be used to strengthen education, health care, and productive infrastructure. To illustrate this, he cited official figures showing that spending on education as a percentage of GDP fell from 3.8% to 3.5% between 2022 and 2024. Health spending dropped from 4.2% to 3.2% over the same period.
A political analyst, who requested anonymity, recalled that in the last report on organized crime, prepared by the State Department, Nicaragua was not only characterized as a drug transit country, but also as a country of storage and production of drugs.
This may become a new ‘stone in the shoe’ in the relationship between Nicaragua and the United States. The reason for this is that the United States has laws restricting fluid commercial exchange with nations where there are high levels of organized crime, corruption and human rights violations.
Beyond the commercial aspect, he recalled that until the second half of 2022 there was cooperation between the Armed Forces of both countries. In particular, when the Southern Command and the Wisconsin National Guard trained personnel from the Special Operations Command (COE) and the Communications Battalion. Since 2023, only Russian, Venezuelan, Cuban and Mexican troops have been arriving, which keeps the country on the U.S. alert list.
Liberal political leader, Eliseo Núñez, pointed out that “this organization understood what organizations such as the World Bank, the International Monetary Fund and others have not wanted to understand. As long as Nicaragua is captured by an authoritarian dictatorship without the rule of law, nothing that happens inside can be trusted by the international community”, he said.
The following are the Index authors’ conclusions to explain the rating given to Nicaragua.
Human trafficking
Nicaragua is both a source and transit country for human trafficking, with victims subjected to sexual and labor exploitation. Economic instability, weak rule of law, and state complicity have exacerbated the problem. Victims are recruited in rural areas with false promises of employment and then forced to exploit themselves in begging, artisanal mining or drug trafficking networks.
Nicaragua is also a source country for victims trafficked to Spain, Costa Rica, Panama and the United States. Actors embedded in the state, including migration officials and law enforcement, facilitate these operations through corruption and bribery. The government imposes unofficial transit fees on migrants traveling north. Smugglers operate along the border with Costa Rica and use local guides (baqueanos) to help migrants navigate difficult terrain.
Illegal trade
The trade in counterfeit goods is widespread, especially pharmaceuticals, footwear, dairy products, and personal care items, which are consumed domestically or smuggled into neighboring Honduras and Costa Rica. Many contraband cigarettes are smuggled into the country , entering from China via Panama, and are distributed through Nicaragua’s porous border crossings with Costa Rica. Illegal brands are estimated to account for between 65% and 80% of total cigarette consumption in the country, resulting in significant fiscal losses.
Drug trafficking
Nicaragua serves as a key transit corridor for cocaine moving from Colombia to the United States. Despite official claims to the contrary, law enforcement seizures have declined in recent years, although it is unclear whether this could indicate an increase in undetected activity. Corruption among public officials further facilitates the trade. A major cocaine seizure in Russia in early 2024 highlighted Nicaragua’s role in international trafficking networks, as the shipment originated in the country.
Cybercrime
Despite the general lack of information, cybersecurity-related crime is seen as an emerging problem in the country, especially targeting independent media and opposition groups. Nicaraguan media have reported constant hacking attempts, often attributed to pro-government actors. Attacks include account hacks and denial of service attacks. Cryptocurrency scams have also targeted digital platforms, suggesting the growing sophistication of cybercriminals in the country.
Financial crimes
Financial crime is a problem in Nicaragua, with state actors implicated in embezzlement and influence peddling. Digital fraud is also on the rise, with fraudulent online sales and payment scams becoming more prevalent. Despite international scrutiny, financial governance remains weak, allowing illicit transactions to continue largely unchecked.
Criminal actors
Unlike other countries in northern Central America, Nicaragua has little evidence of mafia-style groups operating within its borders. However, organized criminal entities provide specialized services to transnational networks engaged in drug trafficking, timber trafficking and wildlife crime. These groups facilitate illicit activities, but do not exhibit the hierarchical structure and territorial control associated with traditional mafia organizations.
State-integrated actors play a key role in organized crime in Nicaragua. The government of “co-presidents” Daniel Ortega and Rosario Murillo has been repeatedly accused of facilitating drug trafficking. In recent years, analysts argue that the Nicaraguan state controls drug trafficking within its territory, managing the trade rather than actively combating it.
The regime’s alleged connections to the Cartel of the Suns, a network of drug trafficking factions within the Venezuelan military, have also been highlighted. The government has been accused of granting asylum and citizenship to high-profile criminals and political allies, which has reinforced its involvement in organized crime. Transnational criminal organizations are believed to use Nicaragua as a transit hub for illicit activities, often with the tacit approval of state authorities.
Environmental crimes
Illegal logging and deforestation are rampant crimes in Nicaragua. Organized crime groups profit from the illegal timber trade, with indigenous territories in the north and south particularly affected. Timber trafficking is linked to violent land grabs, as settlers invade protected areas with the tacit approval of local authorities.
Demand for illegal timber comes mainly from China. The arrival of Chinese companies in 2020 further intensified deforestation, with displaced indigenous communities suffering violence and intimidation. Weak land rights enforcement allows the illegal timber trade to flourish. Deforestation in key regions, such as the Bosawás Biosphere Reserve, continues at an alarming rate.
