Terrorist networks are increasingly capitalizing on Latin America’s vulnerabilities, propelled by drug trafficking and external financial backing, notably from Iran. As global attention focuses on high-profile conflicts in Ukraine, the Middle East, and tensions with China and Russia, terrorism in Latin America operates in the shadows—yet its repercussions resonate worldwide. U.S. counterterrorism efforts in the region remain constrained, despite mounting evidence of the escalating threat.

For decades, Latin America has struggled with terrorism from domestic groups like the Revolutionary Armed Forces of Colombia (FARC), the National Liberation Army (ELN) in Colombia, and Peru’s Shining Path. Once ideologically driven, these organizations have morphed into profit-oriented criminal enterprises.

Compounding this regional crisis is the growing presence of international actors like Hezbollah, the Iranian-backed organization that has entrenched itself in Latin America’s illicit economy. In the Tri-Border Area—where Argentina, Paraguay, and Brazil converge—Hezbollah blends drug trafficking with money laundering, funneling resources to support its operations in the Middle East and beyond.

A sobering reminder of Hezbollah’s entrenched presence came in December 2023, when the U.S. Department of Justice charged a Hezbollah operative for orchestrating the 1994 bombing of a Jewish community center in Buenos Aires, which killed 85 people. This attack underscores Hezbollah’s capability for large-scale operations in the region—and its long-standing commitment to exerting influence there.

Drug trafficking remains the lifeblood of many terrorist organizations in Latin America. Collaborating with local cartels, these groups facilitate the movement of cocaine, methamphetamines, and cannabis to over 1,000 U.S. cities and global markets, generating billions of dollars annually. These profits finance arms purchases, recruitment, and other operational costs for both local and transnational actors.

For Hezbollah, Latin America serves as a strategic hub, enabling the expansion of its narcotics and financial networks. Iran’s financial and logistical support bolsters Hezbollah’s reach, extending its influence across Europe, Africa, and the Middle East. Similarly, remnants of groups like FARC have pivoted from ideological insurgency to dominating coca cultivation and trafficking routes, ensuring a steady revenue stream while destabilizing governance in Colombia and neighboring countries.

Corruption reinforces the interdependence between terrorist organizations, drug cartels, and local governments. Bribes facilitate the complicity of officials, law enforcement, and military personnel, enabling trafficking networks to operate with impunity. This corruption not only undermines the rule of law but also allows terror networks to infiltrate political systems, creating safe havens for their activities.

Venezuela’s ideological alignment with Iran has further empowered Hezbollah’s operations. With a significant Lebanese diaspora, Venezuela has become a gateway for Hezbollah operatives who benefit from the Maduro regime’s close ties to Tehran. These connections facilitate Iran’s investments in Venezuelan oil refineries and other economic projects, strengthening the nexus of terrorism, state corruption, and illicit financing.

Terrorist networks exploit widespread poverty and weak governance in Latin America, often positioning themselves as de facto authorities in neglected communities. By providing basic services and protection, these groups gain local loyalty, embedding themselves within the social fabric while perpetuating systemic oppression. This dual role complicates counterterrorism efforts, as some communities view these groups as indispensable.

The unchecked proliferation of these networks has far-reaching consequences. Beyond destabilizing Latin America, they undermine global security through drug trafficking, corruption, and terror financing. The U.S., as the largest consumer of Latin American narcotics, faces heightened domestic security risks from the resulting drug influx and its societal impacts.

Despite these clear dangers, U.S. counterterrorism and counter-narcotics efforts in the region remain fragmented, hampered by competing priorities in other geopolitical hotspots. Without enhanced international cooperation and targeted reforms within Latin America, the region risks solidifying its status as a breeding ground for terror networks and organized crime. Addressing these challenges demands more than enforcement; it requires holistic strategies to tackle the root causes of terrorism, including poverty, corruption, and institutional weakness.

Latin America’s terror networks represent a complex intersection of local insurgencies, transnational crime, and international influence. Fueled by drug trafficking and fortified by external actors like Iran and Hezbollah, these networks thrive amid corruption and weak governance.

While Hezbollah has suffered significant setbacks in Lebanon, its Latin American operations remain a growing threat to regional and global stability. To counter this, the U.S. and its allies must prioritize the region, balancing counterterrorism measures with economic and social development initiatives. Only by dismantling these networks and addressing the systemic vulnerabilities that enable their growth can lasting security and stability be achieved.