U.S. Department of State Country Reports on Terrorism 2006 - Nicaragua

The most pressing counterterrorism issue for the United States concerning Nicaragua was the stalled destruction of Nicaragua's stocks of man-portable air defense systems (MANPADS). While the Nicaraguan executive branch under outgoing President Enrique Bolanos, as well as the armed forces, recognized the danger of these weapons falling into the hands of terrorists and cooperated with the United States, the opposition-controlled legislature refused to allow the MANPADS destruction program to move forward. The Nicaraguan legislature also failed to act on a comprehensive counterterrorism law that would create a national counterterrorism operations unit and address deficiencies in existing criminal and money laundering statutes. The latter, coupled with both the lack of a Financial Intelligence Unit, and a Prosecutor General who refused to prosecute money laundering cases brought to him by the existing cash-starved Commission on Financial Analysis, amounted to an ineffective anti-money laundering and terror financing regime. Nicaragua's court system was politicized and mired in corruption that reached right up to the Nicaraguan Supreme Court. Nicaragua's immigration system suffered from corrupt practices and could be exploited by terrorist groups.

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