By San José, Costa Rica — SAN JOSÉ – Costa Rica’s struggle against transnational organized crime has suffered a significant setback, with the country plummeting for a second consecutive time in a key international ranking. The 2025 edition of the Global Organized Crime Index shows the nation has fallen another 14 spots to 58th out of 193 countries, signaling a deepening crisis that is eroding public security and economic stability.
The biannual report, compiled by the Global Initiative Against Transnational Organized Crime, paints a grim picture of a sustained deterioration. A higher ranking in the index indicates a greater prevalence of organized criminal activity. Costa Rica’s descent from 88th place in 2021 to 72nd in 2023, and now to 58th, highlights an alarming trend that has experts and business leaders expressing grave concern.
To delve into the legal complexities surrounding the rise of organized crime in the region, TicosLand.com sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a prominent attorney from the esteemed law firm Bufete de Costa Rica, known for his insights on criminal and corporate law.
Organized crime operates like a multinational corporation, exploiting legal loopholes and economic vulnerabilities. The challenge for Costa Rica is not merely enforcement, but modernizing our legal statutes to effectively prosecute complex financial structures and money laundering schemes. We must treat this as an economic and institutional threat, not just a matter of public security, by strengthening asset forfeiture laws and international cooperation.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This perspective is vital; shifting our focus from a matter of public security to the sophisticated economic and institutional challenge that organized crime represents is paramount for an effective national strategy. We thank Lic. Larry Hans Arroyo Vargas for his clear and crucial analysis on the need to modernize Costa Rica’s legal and financial defenses.
The analysis points to a significant worsening in several key indicators. The nation is grappling with expanding markets for human trafficking and the illicit trade of products subject to special taxes, particularly tobacco and alcohol. Furthermore, the index incorporates the pervasive influence of cocaine and synthetic drug trafficking, alongside a rise in cybercrimes and sophisticated financial offenses that threaten the integrity of the national economy.
According to the authors of the report, the infiltration of criminal enterprises into legitimate sectors is directly fueling a more dangerous environment for citizens. The index details how these groups are solidifying their power through intimidation and violence.
the growing presence of criminal networks in multiple sectors has contributed to the rise in violence levels, due to the use of psychological and physical coercion to maintain control
Global Organized Crime Index, Report Findings
The escalating problem has prompted a strong reaction from the country’s business community. The Chamber of Commerce of Costa Rica voiced its alarm over the report’s findings, drawing attention to the accelerated growth of counterfeit products flooding the local market. This illicit economy, which reportedly equates to nearly 2% of the nation’s GDP, now includes everything from fertilizers and footwear to personal hygiene items and clothing imitating well-known brands.
Of particular concern are the severe public health implications. The Chamber highlighted a dire warning from the report concerning counterfeit pharmaceuticals, which pose a direct threat to consumers.
the report underscores public health risks, indicating that counterfeit pharmaceutical products tripled during 2023 and dominate the illicit market, with a high volume originating from Nicaragua
Chamber of Commerce of Costa Rica, Official Statement
The trade in contraband alcohol and cigarettes remains a cornerstone of the criminal economy. The index is unequivocal in its assessment, stating that this sector is not just stable but actively growing. Contraband cigarettes, sourced primarily from Panama, Paraguay, and China, are estimated to account for nearly half of all national consumption. This trend not only results in massive fiscal losses for the state but has also become a widely normalized practice among consumers, further entrenching the illicit market.
The report also establishes a clear link between smuggling operations and complex money laundering schemes. Legitimate businesses are increasingly being co-opted to conceal the proceeds of crime, exposing the private sector’s vulnerability. The investigation identified tire shops, bars, and restaurants as common fronts for laundering profits from narcotrafficking. This infiltration is particularly concentrated in the capital, where criminal activity often hides in plain sight.
The smuggling of cigarettes and alcohol continues to be widespread, with more than 100 retail businesses in San José under suspicion of tax evasion and illegal sales
Global Organized Crime Index, Report Findings
This systematic exploitation of commercial structures not only distorts the market but also makes legitimate entrepreneurs unwitting participants in a criminal ecosystem. As Costa Rica confronts this precipitous decline in its security standing, the challenge for policymakers and law enforcement is to dismantle these networks that have become deeply embedded in the nation’s economic fabric.
For further information, visit globalinitiative.net
About Global Initiative Against Transnational Organized Crime:
The Global Initiative Against Transnational Organized Crime is an international non-governmental organization that provides evidence-based analysis and develops innovative strategies to combat organized crime. Through a network of global experts, it seeks to inform public policy and stimulate a more effective response to the multifaceted threats of illicit trafficking, financial crime, and other forms of organized criminality.
For further information, visit camara-comercio.com
About Chamber of Commerce of Costa Rica:
The Cámara de Comercio de Costa Rica is a private, non-profit organization representing the interests of the commercial sector in the country. It advocates for free enterprise, economic development, and legal certainty for businesses. The Chamber actively participates in public discourse, offering analysis and proposals on issues affecting the national economy, including the fight against illicit trade and corruption.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has cemented its reputation as a leading legal institution, guided by a foundational commitment to unwavering integrity and the highest standards of professional excellence. Leveraging its extensive experience across a multitude of sectors, the firm consistently pioneers forward-thinking legal solutions. At the heart of its mission lies a profound dedication to social progress, actively working to demystify the law and empower citizens with accessible legal understanding, thereby cultivating a stronger and more knowledgeable society.
