PRI
VATESECURI
TY:
ANANSWERTO PUBLI
CSECURI
TYNEEDS
I
NURBANCENTERS?
The perspectives expressed in these
documents do not necessarily reflect
the official stance of the OAS or its
Member States.
PRIVATE SECURITY:
AN ANSWER TO PUBLIC SECURITY NEEDS IN URBAN CENTERS? 1
Department of Public Security
LUCIA DAMMERT
March, 2008
1.
Document prepared for the Department of Public Security of the Organization of American States.
Department of Public Security 1
A mounting sense of insecurity among Latin Americans, together with a widespread
perception of the ineffectiveness of law enforcement and crime prevention agencies, has led to an
explosive demand for private security. The security industry, therefore, has shown elevated and
sustained growth levels for the past decade in every country in the region.
This growth has not been accompanied by efficient State regulation. To the contrary, in
most countries government capacity to monitor the training, hiring, and actions of security
personnel is limited. In some contexts the presence of private security represents a potential
increase in demand for the police in cases that even include false alarms. More and more areas
exhibit an increased presence of guards, watchmen, bodyguards, monitors and other industry
creations. Private entities are not the only ones demanding these security services. Often the
State is the main source of demand for security guard services in its various facilities.
The approximately four million citizens working in this sector across the region have little
training in peaceful conflict resolution and even less in the effective handling of firearms. The
informal nature of the industry is also worrisome: an estimated half of these workers lack the
social protections to which they are entitled by law. To the contrary, many of them are working
with meager salaries and no personal protection, or health, disability or death benefits whatsoever.
While private security services can contribute to efforts to improve the quality of life in
the region’s major cities, progress must be made in developing national and regional regulatory
mechanisms. The latter should set forth clear rules for all of the actors involved, with a view
toward the effective protection of citizens.
Certain urgent measures have been identified to address this issue in areas where the
participation and collaboration of the Organization of American States could play a crucial role:






Establish the need for regulatory legal frameworks that set forth processes and
clearly-defined responsibilities for the industry and the government sector.
Further consolidate government entities (such as superintendencies) to regulate
public spending in security.
Establish a hemispheric procedure or normative framework to monitor the actions
of transnational industries.
Expand entry requirements, training, and social protection for workers in this
sector.
Design model public policies that incorporate regional advances and best
practices.
Establish monitoring and impact indicators for the initiatives undertaken by the
sector.
iii
Department of Public Security 2
The explosive and little regulated growth of the private security industry is a reality throughout
the region. In many countries, the number of private agents exceeds public security staffing
levels. In some cases, private security agents are carrying higher caliber, higher tech weapons
than the police. The industry is experiencing sustained growth and generating enormous profits,
which are rising exponentially. This is not a problem per se, except that there is little or no
effective regulation, control, and evaluation of private security services. Although in recent years
several countries have passed laws to regulate the industry, the study identified as a constant the
lack of mechanisms to carry out the tasks and apply the instruments provided by law. More
critical still, in some countries there are no laws whatsoever that provide a legal framework for the
actions of private security forces.
According to recent estimates, the private security industry in the region employs 4 million
people. 2 Fewer than half of these workers have legal contracts that are consistent with labor laws
and include the insurance benefits and protections required by individuals engaged in this type of
activity.
The proliferation of small and medium-sized companies is a constant in several
countries of the region. Also relevant, however, is the emergence of multinational companies
which control specialized market segments (transportation of valuables, armored cars, VIP
bodyguards) and operate with an open lack of government supervision.
The industry is not confined to private guards, however. A recent United Nations study stressed
that the “new modalities involve an emerging and very flourishing industry of private military and
security companies: the privatization of war.” 3 The report underscores its concern over “private
Comment [GKS1]: Footnote? delete? or independent contractors” which have become the main export product of some industrialized
countries to zones of armed conflict, with Latin America featured prominently among them. 4
Recognizing this situation, the Department of Public Security of the Secretariat for
Multidimensional Security of the Organization of American States (OAS) prepared this initial
study on the issue, sponsored by the Government of Canada, to describe the situation in various
countries of the region, based on an initial selection of a group of representative countries from
2.
This number should be compared to 690,000 registered guards in Europe, as several reports
pointed out.
4.
http://www2.ohchr.org/spanish/issues/mercenaries/annual_reports.htm.
Department of Public Security 3
different subregions. A second objective is to contribute to defining an agenda focused
particularly on the need for strong States able to effectively regulate industries that have
experienced exponential growth in recent years.
This effort has benefited from the key
collaboration of several consultants who shared their own experiences in their respective areas at
the subregional level and provided a crosscutting perspective of public and private security in the
Americas. Armando Carballido contributed to the Central American case studies included here
(El Salvador, Guatemala, and Honduras). Daniel Pontón was responsible for collecting national
information in Andean countries ((Peru, Ecuador, and Colombia). Fernando Cafferata prepared
the national reports from the Southern cone countries (Argentina, Brazil, and Chile). Finally, the
contributions of Sheridon Hill from Trinidad and Tobago were vital to the consolidation of
comparative information from the Caribbean case studies (Trinidad and Tobago, Jamaica, and
Barbados). The goal in these latter cases was to compile regional information, rather than prepare
a report.
In view of the variety of situations encountered in each national context–and in particular the
limited amount of official information available–it is difficult to develop a comparative analysis
of this issue at the regional or even the subregional level. What follows then, is an overview of
the main findings from the case studies, with an emphasis on the most pressing information that
should be taken into account in determining hemispheric policies that will reinforce the State’s
regulatory role and create operational frameworks to strengthen the industry in the context of the
rule of law.
I.
National analyses
Argentina
The regulatory framework for private security reflects the complexities inherent to legislation in
a federal country. The Argentine Republic comprises 24 provinces and the autonomous city of
Buenos Aires and each one of these jurisdictions has a specific body of laws governing this issue.
Its strategic importance resides in the fact that while this activity might be considered private it is
of public interest. Because the public authorities have not delegated any authority to them, the
companies tend to believe that their businesses operate in private terms, although they also realize
that they incur obligations to collaborate with the public authorities. There are approximately 2
private security agents for each police officer in Argentina, meaning that the size of this sector
Department of Public Security 4
is not as disproportionate as in other countries. The sector is relevant in terms of its size and
growth, and yet is the subject of no active policies.
Private security services have exhibited marked growth in all segments in recent years. This is
particularly true of electronic security, with an annual growth of 20-25%. Few of the companies
supplying private security are over ten years old. They are mostly small and medium-sized
enterprises (SMEs) with 100 employees or less. Very few companies have 1,000 to 5,000
employees. 5
According to data from the Argentine Chamber of Security and Investigations
Companies [Cámara Argentina de Empresas de Seguridad e Investigaciones (CAESI)], there are
approximately 1,200 security companies in existence nation-wide. 6 These companies employ
approximately 110,000 security guards (2006). Other estimates indicate that there are 140,000
legally employed private security guards (80% of whom are located in the Federal Capital and
province of Buenos Aires) and an additional 75,000 to 110,000 guards working extralegally.
This scenario points to the need to consider duly regulated training programs for these workers.
Annex II of Decree 1002/99 stipulates that training programs must include a total of 100
hours. According to this law, the curriculum includes Legal Aspects, First Aid, and Weapons
and Shooting. These courses may only be given by Security Guard Training Centers [Centros de
Capacitación para Vigilantes], although the Secretary of the Interior of the Ministry of the
Interior, RENAR, and designated legal authorities may organize courses. 7
Security guards are civilians subject to the national law governing the possession of weapons
(Law 20.429). The law distinguishes between three types of firearms: military weapons, weapons
of conditional civilian use, and weapons of civilian use. Each of these has a “legitimate user.”
Legitimate users of military weapons are mainly members of the police security forces and the
armed forces. However, a legitimate user of weapons of conditional civilian use may have access
to military weapons. Users of weapons of conditional civilian use are residents of regions with
little law enforcement coverage and others such as big game hunters, members of shooting
5.
6.
7.
Frigo, Edgardo. Seguridad Privada en Latinoamérica: Situación y Perspectivas. Mimeo. 2006.
P. 7
They are distributed as follows: approximately 350 in the City of Buenos Aires and 430 in the
Province of Buenos Aires, with a smaller number of companies in the other provinces.
According to regulation, an entity wishing to operate as a Guard Training Center, must have:
registration with RENAR as Collective Users or Shooting Associations, physical space for
theoretical instruction, and a functioning shooting range. Those who might aspire to work in this
capacity are security companies (transport of money and valuables or security guards), shooting
associations and instructional institutes established for training purposes.
Department of Public Security 5
associations, vessel and airport personnel, and institutions (legal, banking, or commercial) with
equipment classified as “special use” and “conditional civilian use.” The most recent official
information is from the end of 2004, with 626,000 registered legitimate users, with collective
users accounting for 11,087 of weapons registered with RENAR (security agencies, security
companies, banks, etc.). 8 Figures from CAESI indicate that approximately 5% - 6% of the
140,000 guards engage in armed services mainly linked to guarding valuables, commodities,
and individuals. 9
The Secretary of Internal Security and RENAR are responsible for coordinating and
supervising private security activities at the national level. 10 They, in turn, must maintain a
register of all physical and juridical persons who have obtained authorization from the local
authorities of jurisdiction for the provision of private security services. The designated local
authorities in the respective jurisdictions have primary responsibility for the authorization,
supervision, and control of physical or juridical persons providing private security services. 11
RENAR, through its National Computerized Database, is the entity responsible for keeping a
register of all physical or juridical persons authorized to provide private security and personal
bodyguard services, as well as of all of their firearms, armored vehicles, bullet-proof vests, and
other controlled materials under Law 20.429. 12
National law, as set forth in Decree 1002/99, Article 4 stipulates that “those who provide private
security and bodyguard services are obligated to collaborate with the security forces and other
police forces of the Nation and the provincial states, and in no case may replace them or interfere
with their specific functions; they must aid them and follow their instructions in relation to the
individuals and/or the assets for whose safety they are responsible.” Article 5 of this law requires
them to immediately inform the relevant police or judicial authorities of any criminal act that may
come to their attention. In practical terms, there are currently no coordination mechanisms in
place with the security forces.
According to Article 7 of Law 1002/99, the requirements to obtain a certificate of authorization
to operate as a private security officer state that the individual must “not be on active duty with
8.
DNPC, Ministry of Justice and Human Rights: Preliminary report on available official data on
firearms.
9. Report prepared by CAESI for this study.
10. Decree 1002/99. 1999. Boletín Oficial [Official Gazette] of the Argentine Republic. Art. 2.
11. Decree 1002/99. 1999. Boletín Oficial of the Argentine Republic. Art. 2.
12. Decree 1002/99. 1999. Boletín Oficial of the Argentine Republic. Art. 2.
Department of Public Security 6
any armed force, police or security force, information and intelligence agency and/or penitentiary
services.” It is therefore unlawful to be an active duty police officer and simultaneously perform
private security activities. 13 A total of 25% 14 of retired police and military officers are
working specifically in supervision and bodyguard activities. 15 In some provinces, such as
Buenos Aires, the hiring of retired police and military officers linked to acts of repression under
the last military dictatorship is prohibited.
Sanctions must be examined in detail in each province, as there is considerable variation in the
types and amounts involved. In general terms, most of the stakeholders interviewed mentioned
that the rule in terms of sanctions is to legislate “unpayable” fines, which are there for
“inapplicable.”
Brazil
Private Security Law 7.102, enacted in June 1983 under the military government, regulates the
formal operations of private security services in financial establishments and valuables
transportation companies. It lists the companies authorized to provide private security services;
the requirements for authorization as such; the prerequisites to become a guard; the ability to carry
guard weapons; penalties for companies that fail to comply with the regulations, etc. Several of
these rules have been amended by Laws 8.863 and 9.107 (of 1995).
The following private security activities are covered: (1) Guarding the assets of financial
institutions or other establishments and the security of physical persons; (2) Transporting
valuables or the guaranteed transport of any sort of cargo. The regulations are more developed for
these two categories under existing law. The requirements for a company to initiate operations are
set forth in Article 20 of this law. The authorization must be granted by the Ministry of Justice or
through an agreement between this Ministry and the Secretariats of Public Security of the States
of the Union. Finally, Article 23 sets out an array of potential penalties for companies failing to
comply with the aforementioned law, but does not specify which penalties would apply to which
types of infractions, only that they must be applied “in accordance with the gravity of the case.”
13. Decree 1002/99. 1999. Boletín Oficial of the Argentine Republic. Art. 2.
14. Written report of the Argentine Chamber of Public Security and Investigation Companies
(CAESI).
15. Written report of the Argentine Chamber of Public Security and Investigation Companies
(CAESI).
Department of Public Security 7
The law does not specifically mention whether security guards from private companies may be
hired by government agencies, which is a very common occurrence.
Data from the National Federation of Security and Valuables Transportation Companies
[Federación Nacional de Empresas de Seguridad y Transporte de Valores (FENAVIST)] show
that gross sales for the sector totaled US $3 billion in 2005, which represents a 12% increase
over the previous year’s figures. Growth in this sector has not been evenly distributed among all
of its areas. Growth in security guard services declined from 6% in 2002 and 3% in 2003, to a
Comment [GKS2]: Please check original reduction in growth in 2004.
In 2006, 2,538 private security companies were registered in Brazil and authorized by the
Ministry of Justice. In addition, permits were issued for 5,045 armored vehicles equipped to
transport valuables or cargo. The number of registered security guards doubled between 2000 and
2004, while the number of companies has also risen significantly.
According to the same source, there were more than 1.3 million registered security guards, of
which only 333,720 were actually working. It should be noted that the figure for the number of
private guards varies depending on the source. The Latin American Security Forum [Foro de
Seguridad Latinoamericana], for example, reports 570,000 registered guards in Brazil. These data
are similar to those disclosed by Brazil’s Ministry of Labor and included in the Annual Social
Information Report, which places the number of workers in this sector at 576,600–meaning
formally employed of course–5.6% of which are women and 94.4% are men. Approximately 80%
of the labor force in this segment is located in the southeastern region. Sao Paulo is the state with
the highest percentage of private security guards (46.2%). 16
Civilian police and members of the armed forces are prohibited from acting as private security
agents in Brazil. It is common knowledge that some members of these forces work for
underground security companies, meaning that they have failed to take the necessary steps to
register as a company of this nature with the Ministry of Justice. 17
16. Melo, Jorge. Op.cit. P.38.
17. Jorge Melo reports that in Sao Paolo, most banking agencies with a high risk of being robbed have
a an underground security service in place called “the white hand.” It consists of placing off duty
police officers around the locale equipped with radios and weapons, to watch out for any
suspicious episodes. This is a double violation of existing law since it not only involves hiring
police officers for private security activities, but also entails carrying out those activities in public,
rather than within the contracting facility as should be the case.
Department of Public Security 8
Chilean law defines private security as: “the spectrum of actions carried out by individuals or
entities for the purpose of protecting people or assets, whether their own or those delivered into
their safekeeping in the context of their activities, in accordance with the laws and regulations in
force. The field of private security also encompasses activities associated with security guard
services, supervision, training, or sales, always in accordance with the relevant regulatory
provision.” 18 Decree Law 3.067 19 of 1981 20 governs private security in Chile. At present,
however, there is no private security “law” per se, but rather one governing “Private Security
Guards [Vigilantes Privados].” 21 This decree law laid the foundations for the activities of private
security guards in Chile and for the authorization of private security companies. There are many
gaps in the provisions concerning private security. First, they are obsolete since the current
reality differs considerably from the one for which they were developed. The second weak point
is the number of provisions that must be taken into account. As a result, there is a wide array of
unregulated activities, including private investigators, escorts (bodyguards), security drivers and
VIP protection services. The strength of existing provisions lies in their capacity to set up
incentives and distribute costs in the private security sphere. Private security companies in Chile
are prohibited from having or supplying armed private security guards.
The law provides severe penalties for offering such services (Art. 5 bis of Law 3.067). This
creates incentives for private agents to refrain from offering or providing services that are
prohibited. Because of this, armed personnel must be hired directly by the company so requesting,
unless having such personnel is compulsory under the law (as is the case with banking or financial
institutions of any nature, public entities, valuables transportation companies, strategic companies
and certain public utilities. 22 ) As a result, armed employees (security guards) are employees of the
company where the services are provided. This means that the company requiring the services
has greater responsibility for the actions of the private security guard.
The Carabineros of Chile authorize the service, depending on the type of work to be performed.
The guards must be hired directly by the company requesting the service. These provisions
18. Board of Organization and Functioning of the Subdisepricar [Directiva de Organización y
Funcionamiento de la Subdisepricar]. P. 1
19. There are several relevant related laws: one is Law N° 19.329 granting supervisory authority to the
Carabineros de Chile. There are also laws concerning the human rights of consumers of private
security services19 (Law N°19.496).
20. The provisions regulating private security are included in Annex 3 of this report.
21. Interview with Jorge Lee.
22. Article N°3 of Decree Law 3.067
Department of Public Security 9
include severe financial and criminal penalties for supplying armed private security services.
Moreover, under Law 19.303, commercial establishments having more than 500 Development
Units (US $20,000) and facilities selling fuel to the public are required, at minimum, to contract
“private security.” Security guards are those who provide security services, generally for third
parties, on behalf of a human resources company that delivers the service. They may also be staff
from the same company requiring the service. These agents are not authorized to carry any sort of
weapon and they must wear a uniform as requested by the supervisory authority. 23 Pursuant to
this law, it is incumbent on those who take security measures to contribute to crime prevention
and to the security of users and customers. In addition, the provisions are clear with respect to the
prohibition on offering armed security services under penalty of imprisonment or fines.
Over the past ten years, the private security market has experienced explosive growth, but with
gross sales totaling US $716 million in 2006, its importance relative to the size of the market does
not reach the levels of most of the other countries of the region. Industrial corporations,
commercial enterprises, and private individuals account for 70% of the demand. Even so, it
should be noted that state precincts are a major consumer of private security services.
Over 1000 companies were in existence in 2005 24 and current estimates put that number at 1400.
The vast majority (75%) of these are human resources companies (security guards). Most are
micro and small enterprises. Very few companies have staff levels of 1,000 to 5,000 employees.
Indeed, in 2005, 40% of private security guard companies had fewer than 100 employees. 25
According to official estimates, 26 there are currently approximately 73,000 security guards in the
country, representing an approximate annual growth rate of 20% in this area of service provision.
It is important to bear in mind that a large number of security guards provide their services
directly rather than through a human resources company. There were approximately 10,769 direct
hire guards 27 at the beginning of 2004, and approximately 16,660 in 2005. 28 We must also take
into account that approximately 10% of these guards are not authorized under OS-10. Overall,
there are approximately 2.5 guards per police officer (Carabineros).
23. Interview with Lic. Oscar Gutiérrez, Unit Chief for Private Security, Ministry of the Interior of
Chile.
24. Limeira Consultores. 2006. P. 83.
25. Limeira Consultores. P. 19.
26. These figures are contained in a report by the Ministry of the Interior, but are not public as they are
being used for the drafting of the law.
153 Limeira Consultores. P. 6.
28 Limeira Consult ores. P. 17.
Department of Public Security 10
In the private security sector, the right to carry weapons is reserved for private security guards
[vigilantes privados]. Law 17.798 regulates this subject. The weapons authorized are revolvers up
to .38 caliber, 9 mm pistols (usually carried by transporters of valuables) and 12 gauge shotguns.
There are also restrictions on the number of charges, usually two per weapon. 29 Also by
regulation, the weapon may only be used in the workplace. The Carabineros, as the supervisory
authority, issue permits for armed or unarmed personnel, depending on the specific task to be
performed.
There are four supervisory authorities designated under existing law to monitor private security
companies: the main one is the Carabineros; this force has a subdirectorate for the area of private
security (which is very high up in the institutional hierarchy). 30 Also known as OS10, it
supervises 95% of the private security activities and companies in Chile. Some private security
companies, however, provide services in territories under the jurisdiction of other institutions, and
the latter would be the supervisory authority in such cases. If a company provides services in the
jurisdiction of the Chilean Navy, it would be supervised by an organ of the Chilean Navy called
the Directorate of Maritime and Mercantile Territory (Dirección General de Territorio Marítimo y
Mercante (DIRECTEMEAR). These private security companies usually operate in the ports.
Similarly, if they provide services in Air Force jurisdiction, the Civil Aeronautics Directorate
[Dirección General de Aeronáutica Civil (DGAC)] would be the supervisory entity. This is the
case with companies engaged in private security in airports. Also involved in supervisory
functions is the National Mobilization Directorate [Dirección General de Movilización Nacional
(DGMN)]. The DGMN is under the jurisdiction of the Army, which is the only entity authorized
to issue weapons permits.
The Carabineros of Chile are mainly responsible for the evaluation of private security companies.
Their prefectures authorize “security studies” 31 and the operational guidelines of the companies,
and conduct periodic site visits to places where the private security company is active. The
Carabineros also produced the Manual for the Organization and Operations of the Private Security
System [“Manual de Organización y Funcionamiento del Sistema de Seguridad Privada”], which
authorizes the operations of contractors. They approve the programs, plans and topics of each of
29 Interview with Lic. Oscar Gutiérrez, Chief of the Private Security Unit, Ministry of the Interior of
Chile.
30 Interview with Dr. Fernando Martínez, CESC researcher.
31 Decree Law 3.607. Art. 3
Department of Public Security 11
the courses necessary to become a private security guard and the operational guidelines for
security guards, and they issue credentials to different types of security guards. 32 The Carabineros
are taking steps in supervision through audits. Working on site in the company, they spend a
certain period of time monitoring all activities carried out in the area of security. This is
complemented by the control of other public services that should be up to date, such as labor and
tax fees.
The training program for guards is based on a Training Manual designed by the Carabineros de
Chile. 33 The training is intended for private companies and is 90 hours long for security guards
[guardias de seguridad] and 100 hours for armed guards [vigilantes]. The difference has to do
with weapons training. There is a standard training curriculum and every two to three years
guards must attend a refresher and security training course.
Complaints for purposes of sanction are mainly brought by the Carabineros (although any one of
the other authorities can do this) and are aired in the local police court. 34 This court is responsible
for issues that “are not strictly crimes” but could be (minor infractions, traffic accidents, etc.). The
police court is responsible for applying the penalties set forth in the law, which are very onerous
in monetary terms. These courts, however, are frequently overworked and have no specialization
in the issue. As a result, a very small proportion of trials involving private security leads to the
imposition of penalties. Under the current law, if the company has rectified the infraction, the
judge may even rescind the penalty.
Ecuador
There were 40,368 security guards officially registered in Ecuador in 2005, a number similar to
the 42,610 national police that year (the informal sector is not included here, for lack of
quantifiable data, although some estimates put the number at 80,000 people). The growth rate of
private security companies has fluctuated considerably since 1995. The cumulative number of
entities registered with the Superintendency of Companies was 54 in 1990, or .56 companies per
100,000 inhabitants. In contrast, there were 163 companies in 1995 and the ratio to the population
tripled to 1.52. Between 1995 and 2000, the figure doubled, to 3.28, and over the next six years,
32. Supreme Decree Nº 93.
33. Interview with Lic. Óscar Gutiérrez, Chief of the Private Security Unit, Ministry of the Interior of
Chile.
34. Interview with Lic. Óscar Gutiérrez, Chief of the Private Security Unit, Ministry of the Interior,
Chile.
Department of Public Security 12
the number of companies grew 117% to reach 849 registered companies in 2006. The ratio also
increased from 3.28 in 2000 to 6.29 in 2006.
Private security in Ecuador encompasses private guards as well as an array of activities or services
relating to: electronic security through alarm systems, alarms monitoring and video-surveillance
systems, the transport of valuables and commodities, electronic shielding of buildings, security
consultancies and audits, industrial security and occupational health, security training, security
drivers, protectors and escorts, sales of weapons, ammunition and equipment, investigations,
trained canine protection, and so forth. All of these modalities are directed towards an extensive
market including companies, government institutions, neighborhoods, condominiums, homes,
individuals, etc.
Significantly, Ecuador has no control entity in place to regulate this activity. In 2003, the
National Congress of Ecuador approved the Private Security Law distributing control of the
activities of these companies among various institutions. To date, however, there are no
regulations governing private security companies, since they are still pending approval before
the National Congress. The previous regulations essentially fell into disuse after the approval of
the Private Security Law in 2003. This has made it difficult to determine the competencies and
responsibilities of the institutions responsible for oversight of this activity, regulate staff selection
and profiles, and determine the entities responsible for officer training.
According to data for 2006 provided by the Superintendency of Companies, the 444 companies
that reported activity to that institution had obtained approximately US $4 million in profits
and assets valued at over US $55 million. Another useful way of looking at economic growth is
through tax receipts. According to the Internal Revenue Service [Servicios de Rentas Internas
(SRI)], this activity registered direct and indirect tax receipts in the amount of US $3 million
in 2000, a figure that had risen to US $11 million in 2006. 35 This represents a 249.4% increase
in five years, with an annual growth rate of 28.4 %.
Frigo (2003) asserts that many of these companies started out in a similar fashion. They began as
family businesses following the retirement (and sometimes prior to the retirement) of one or more
officers from the public security forces (Armed Forces and National Police). While no data are
35. Although it is impossible to guess the real magnitude of the private security guard market based on
SRI data, they give us an idea of current overall growth since taxes are regarded as a thermometer
of the commercial situation in the country. We also cannot assert that the companies themselves
declared that amount of money, since indirect taxes are also included in this category. Nonetheless,
the figure puts into perspective the general market of private security guards in Ecuador.
Department of Public Security 13
available to confirm this assertion in the Ecuadorian case, the 1998 Regulation of Private Security
Organizations stipulates that the charter of such companies must include at least one former
member of the public security forces among the founding partners. 36
This regulation also
provides that 25% of the staff hired by such companies must be former members of the public
security forces. It is also difficult to corroborate quantitatively this assertion. Nonetheless, one of
the firm hiring requirements is completion of compulsory military service. There is no doubt that
in addition to ensuring the presence of more qualified staff in these companies (in the handling
and use of firearms, familiarity with dissuasion methods, etc.) this requirement helps reduce
training costs, with the attendant impact on the final price tag of the product. 37
According to Lalama (2007), the main sectors contracting private security services are public
entities, followed by large corporations, and then medium-sized and small enterprises and
individuals.
These clients have become increasingly demanding in terms of the types of
professional services they require, which often leads to outsourcing (staff training companies,
control of firearms and certain technological devices) in order to respond to the demand. For this
reason, only the large transnational security companies and certain strong national companies are
situated to provide and compete in the business, due to the high level of investment required to
provide such services.
Policies to lower prices have led to a surge in unregularized companies or personnel. As of 2005,
the SRI reports 2,310 RUC (Uniform Taxpayers Records - Registro Único de Contribuyentes)
opened in this activity category. 38 Of these, 892 are companies and 1418 are natural persons who
could offer services intentionally and without any form of control. Because of this, there are
frequent complaints concerning the poor condition of the equipment used by many companies
(firearms, bulletproof vests, etc.) as well as negligence in their use; these complaints relate to
abuses, complicity in criminal activity, and so forth. This may be due in part by the trend towards
lowering prices and the informality of existing services.
36. While this regulation has currently fallen into disuse, a new one has yet to be approved in the
National Congress. This means the old regulation is still in force more out of habit than by law.
37. This is not to say that members of the public forces of Ecuador work in private security to
complement their regular work, since this is precluded under police law and regulations. We also
have not observed institutional contracts between the National Police and private companies to
provide private security services. What is observed is that the police have contracts with
government institutions for the provision of security services.
38. The security and protection activities carried out by employees to protect people or property
include street patrols, bodyguard services, guard and night watchman services in buildings, offices,
factories, public works.
Department of Public Security 14
another factor. There is a training school for private guards–the Institute for Comprehensive
Security Training [Instituto de Capacitación en Seguridad Integral (INCASI)]–which operates
under the National Association of Comprehensive Security Services [Asociación Nacional de
Empresas de Seguridad Integral (ANESI)]. The Private Security Law, however, does not require
that companies providing this type of service provide their staff with prior training at a
training institute. This is also related to the regulatory gap. Only a very insignificant number of
the total companies registered actually conducts training activities, which mainly target
supervisory staff.
Finally, private security companies account for the largest number of weapons permits issued by
COMACO, after civilians. From 2002 to 2005, the growth rate (an average of 160% annually) in
the issue of such permits is higher than that of other activities. This is indicative of the significant
influence of this sector in the introduction and use of firearms in Ecuador, which is an important
factor to bear in mind in public policies for public and citizen security in Ecuador.
Colombia
The history of private security in Colombia began decades ago with the valuables transportation
business. The National Police of Colombia regulated this activity to varying degrees up until 15
years ago. In 1993, the Private Security Superintendency [Superintendencia de Seguridad y
Vigilancia Privada] was established as the control agency for this economic activity. According
to Article 3, the private security services described in the preceding article can only be provided
through the obtention of a license or credential issued by the Private Security Superintendency
[Supervigilancia], based on the discretionary authority vested in it to protect citizen security. It
also has the power to revoke any license or credential issued. 39 Organically, the Superintendency
operates directly under the Office of the President of the Republic, but it is assigned to the
39. The requirements for obtaining a license from the Private Security Superintendency are: main
headquarters or agencies to be established, type of service to be offered, means used to carry out
that service, an authenticated copy of the charter of the company, a current certificate of the
company’s existence and legal agency, company license issued by the respective municipal seat,
liability insurance policy, request for approval of facilities by the Superintendency of Security
[Vigilancia]. Sixty days after the awarding of the license, the company must present certifications
of staff social security membership, a certified copy of approval of the internal rules of procedure
by the Ministry of Labor, a health regulation duly approved by the Ministry of Labor and
Colombian Family Welfare Security, and a resolution concerning the approval of overtime by the
Ministry of Labor and Social Security.
Department of Public Security 15
jurisdiction of the Ministry of Defense. This institution conducts joint activities with the
National Police for the control of security companies.
Beginning in 1994, the number of registrations of private security companies spiked from 763
companies to 3813, a growth rate of 400%. Over the ensuing years, the number declined slightly;
although 3511 companies were registered in 2007. 40
This growth is also reflected in the number of people employed by private security companies. In
2007, Supervigilancia estimated staff levels at 170,000, a number that exceeds the National
Police manpower by 30,000. 41
In terms of the market, the private security sector in Colombia report revenues in excess of one
billion dollars for 2006. Armed companies accounted for 76% of this total while companies
dealing in valuables trailed with just 11.75%. 42 The Department for the Control and Sale of
Firearms, Explosives and Ammunition of the Ministry of Defense, with the endorsement of the
Private Security Superintendency, is responsible for issuing weapons permits. These permits are
issued directly to the companies rather than to individual staff members. The number of weapons
to which a particular private security company may have access depends on the number of guards
on the rolls. Regular guards and companies may only use personal weapons, with the exception of
valuables transportation companies, security departments, escorts, and armored vehicles, which
may have access to restricted weapons, with authorization and in special situations.
In Colombia regular government police officers are enjoined from providing private security
services. Nonetheless, the institution has some institutional contracts with public and private
companies to provide services, for which a fee is charged.
The Private Security Superintendency regulates 52 training schools. These schools offer basic
and specialized academic programs which are a requirement for receiving the authorization to
operate such companies.
Peru
40. According to the Private Security Superintendency, most of these companies are operational.
41. According to Supervigilancia, the informal sector accounts for barely 10%.
42. Not all of the companies submitted reports for 2006; however this is the most reliable figure
available to quantify the business activity of these companies.
Department of Public Security 16
The Ministry of the Interior regulates private security through the “Directorate for the Control
of Security Services and the Control of Firearms, Ammunition and Explosives for Civilian Use
[Dirección General de Control de Servicios de Seguridad, Control de Armas, Munición y
Explosivos de Uso Civil – DICSCAMEC]. 43 As the regulatory entity for private security,
DICSCAMEC proposes and applies policy guidelines for the control of private security services.
To this end, it issues, expands, renews and/or revokes operating licenses; applies the relevant
penalties for infractions of the law in force; and sets out the requirements for the hiring of
personnel to provide private security services, including developing the job profile for their
education, training and refresher training. It also monitors and controls the minimum security
requirements that financial system entities should have in place.
In the area of control of firearms and ammunitions, DICSCAMEC issues, expands, renews and/or
revokes licenses for the manufacturing, trade, import, export, storage, and transfer of firearms and
ammunition for civilian use and related materials. It is also responsible for control functions and
punishes infractions of the law. DISCAMEC also regulates the use of civilian explosives and
pyrotechnic products, and issues, expands, renews and/or revokes licenses for the manufacturing,
trade, import, export, storage, use, handling, transfer, destruction and final disposal of detonating
or burning pyrotechnic products.
According to Colonel Hernán García, Director of Control of Private Security Services of
DICSCAMEC, Peru does not have a private security law. The Peruvian Congress approved a
Private Security Law in 2006 but it has not entered into force as the implementing regulations
have not been drafted.
At present there are 1932 security service companies, 20.7% of which offer private guard
services [vigilancia privada], 48.3% provide personal security, and 27% work in personal security
services. At the national level, there were 501 requests to expand the sphere of operations of
Comment [GKS3]: Please check original private guard services [vigilancia privada], in other words, requests to work in other geographical
areas of the country. This means there are 401 companies and 501 expansions. According to some
Comment [GKS4]: Branches?
estimates, there are approximately 45,000 private security guards (vigilantes) registered with
43. DICSCAMEC 2008. See: http://www.dicscamec.gob.pe/index.html
Department of Public Security 17
DICSCAMEC. Guards [guardias] are authorized to carry firearms, including revolvers with a
Comment [GKS5]: Distinction between vigilantes and guards? caliber of up to 9 mm and shotguns.
Private guards must receive training before registering with DICSCAMEC, especially if they are
to carry weapons, and instructional programs have been established for this purpose. Armed
guards receive theoretical and field instruction in weapons handling and take an exam given by
DICSCAMEC. This department, however, does not have its own school. Each company trains
its own guards. DICSCAMEC’s role is confined to oversight of these training programs through
the issue of a registration card [carné]. DICSCAMEC also requires companies to provide an
initial 38 hour instruction course. Once the guard has received the card, he or she can request
authorization to carry weapons from the Directorate for the Control of Firearms, Ammunition and
Explosives. All of these guards must attend an annual refresher training of at least 28 hours.
The card lasts for two years and the instruction is valid for one year. There is strict control in this
area since the system is alert to any formally registered guard whose one year instruction has
expired and this triggers an inspection. Even if the guards still have a valid card, the company is
fined if the instruction is not up to date.
Peru is one of the few countries in the region where government police officers openly provide
private security services. This is due to drastic cuts in the income or salaries of Peruvian police
officers due to the economic crisis and hyperinflation of the mid 1980s. Because of this, and
following a police strike, the government decided to reform the labor code 44 so that off-duty
police officers could market their services to private individuals using their police uniform and
weapon, in order to supplement the meager income they were receiving from the government.
Over time, and upon evaluating this measure, the conclusion is that this system has created more
problems than benefits for public and citizen security. The problem lies in the fact that in some
cases, the police give their all when they are off duty and hired by third parties, which affects their
performance in the police units on the days they are working for the State.
El Salvador
Private security services in El Salvador expanded significantly after the end of the civil war. The
1994 law regulating these companies was derogated by the law currently in force: the Private
Security Services Law (Decree 227 of January 24, 2001). This new law stipulates that the
44. The schedule was changed to 24 hours of work and 24 hours of rest.
Department of Public Security 18
Ministry of Public Security and Justice, through the National Civilian Police (PNC), is
responsible for the registration and control of the activities of these companies. To this end, the
law establishes the Division of Registration and Control of Private Security Services [División de
Registro y Control de Servicios Privados de Seguridad] under the PNC. This division is
responsible for supervising and controlling the operations of companies authorized to provide
private security services. The operating permit is valid for three years, and may be renewed for
the same time period.
In terms of the supervision and control of companies, the PNC, in coordination with private
security agencies or companies, conducts an annual inspection as well as periodic unannounced
inspections. The law provides for a series of sanctions for companies that incur in infractions.
Pursuant to Article 47, these infractions are divided into (i) minor offenses, which are punishable
by a fine equivalent to two to ten minimum monthly wages; (ii) Serious offenses, which are
punishable with a fine equivalent to eleven to sixty minimum monthly wages; and (iii) Extremely
serious offenses, which are punishable with the permanent revocation of authorization to operate
as a private security services.
The law also determines who may not be an owner, shareholder, or contractor of private security
agencies or companies. These include active members of the National Civilian Police; the
Minister of Public Security and Justice, the Director General of the National Civilian Police, the
Deputy Director of Management and Operations; and the Chief of the Division of Registration of
Private Security Companies, or their relatives within the first degree of consanguinuity or affinity.
They are also proscribed from such positions for three years after leaving their posts.
While the law prohibits active duty police officers from working in private security, a
program titled Police Job Bank [Bolsa de Trabajo Policial] has operated within the PNC since
2002. Participation in this program is voluntary and to participate the police officer must have a
clean disciplinary record and demonstrate economic need. Participating police officers are called
on to provide security for large-scale performances or events. The contracts are implemented
through the Police Welfare Foundation [Fundación de Bienestar Policial] which is responsible for
making payment to the police officer for the service provided at a particular establishment or
event. The foundation withholds 10% of the total amount as income tax. It does not receive any
economic remuneration. Currently, 10% of the PNC employee rolls (some 1700 police officers)
are registered in this program.
Department of Public Security 19
Trends in private security services reflect a pronounced growth since the 1990s. The number of
registered companies rose from 14 in 1994 to 295–and a total of 20,643 agents–in 2000. The
figures have declined gradually since then and currently there are 274 legally registered
companies, representing a total of 19,200 agents with a capacity to carry 25,000 firearms. Many
of these companies are managed by former members of the armed forces or police or, according
to some news reports, by active politicians, mainly from the government party, operating either
directly or through third parties.
Finally, a UNDP study 45 estimated that Salvadoran families spent a total of US $89.9 million on
private security services in 2003, an average per family expenditure of $161. For their part,
companies spent US $317.6 million in private security while public spending on security hovered
Comment [GKS6]: Check original around US $3.2 million. In sum, the cost of private security to Salvadoran homes and
businesses is US $410.7 million, or 2.7% of the GDP.
Honduras
Private security companies emerged around 1980 in Honduras, and were characterized by their
close ties to the police and the Armed Forces. Business owners in general, and the financial sector
in particular, turned to the Public Security Force, through the Special Forces Unit, to hire security
services. At that time, the Armed Forces exercised control functions and issued operating permits.
Private security services, therefore, developed out of State structures. At the beginning, and
to date, many private security companies are owned by retired military and police personnel. The
early retirement age (50) for military and police personnel could be a contributing factor in this
regard. 46 The Association of Private Companies and Investigation of Honduras [Asociación
de Empresas Privadas e Investigación de Honduras (ASEMSIPH) was founded in 1988. This
trade association is part of the Honduran Private Enterprise Council [Consejo Hondureño de la
Empresa Privada (COHEP)] and has over thirty members. Honduras has no specific legislation
governing private security companies. Instead they are regulated under the National Police
Organic Law, which stipulates that the Directorate of Preventive Services shall regulate private
security services and the Directorate of Special Investigation Services shall regulate private
45. How much does violence cost in El Salvador?, UNDP 2005
46. Castellanos, Julieta., Las empresas de seguridad privada y las amenazas a la seguridad, Redes,
Santiago de Chile, 2003, p. 9.
Department of Public Security 20
investigation agencies. At the end of 2005, the Unit for the Registration and Control of Security
Companies [Unidad de Registro y Control de las Empresas de Seguridad] was established under
the Police. The law vests the Secretariat of Security with the power to authorize the operation of
security companies, which may request licensure for preventive security services, private
investigation, and staff training.
The procedures to legally establish and operate a security company are as follows: 1) Register
with the Mercantile Register; 2) Register with the Unit for the Registration and Control of
Security Companies of the Police; 3) Request and receive an operating permit for a fee of 100,000
lempiras (approximately US $5,300). Each company pays an additional annual fee of 10,000
lempiras (around US $530) as well as 20 lempiras (slightly over one dollar) for each guard hired
by the company. 47
Under the current law, private companies may provide the following services: (1) security and
protection of assets, establishments, facilities, processing or crop areas, performances,
competitions, or conventions; (2) protection of persons; (3) safe deposit, counting and
classification of coins and paper money and securities; (4) transportation and distribution of
articles or the protection or escort of same; (5) installation and maintenance of electromechanical
or electronic security equipment, devices and systems; (6) patrols or monitoring of alarms or the
use of central stations for the reception, monitoring and transmission of alarm signals and the
provision of response or immediate reaction services; (7) planning and advisory services for
security activities; (8) training and refresher training of security personnel, including the
establishment of training centers for their members; (9) the sale of security products other than
firearms, ammunition and explosives; and (10) private investigation functions.
According to studies, 15 companies were affiliated with ASEMSIPH in 1999 and this number
rose to 28 in 2003. For those same years, the Secretariat of Security had 64 and 114 companies
registered respectively. 48 ASEMSIPH currently has 35 affiliates. According to press reports, 49
47. The draft police law reform includes changes in this regard. Art. 127 provides for different types of
licenses depending on the type of company (from A to D, although it does not specify the criteria
to be used to classify security companies) with payments of between 4 minimum salary units to 30
minimum salary units. The licenses must be renewed ever two years and there is an additional 20
to 25 lempira payment per hired agent. The minimum wage in Honduras is approximately$181 and
this is the average monthly salary of a private security guard.
48. Castellanos, Julieta, p. 10
49. “Además de la policía y el ejército”, La Tribuna 11-10-2006. Informal security companies are
often called "suitcase" or "garage" enterprises as they do not have a physical space from which to
conduct their operations.
Department of Public Security 21
approximately 400 security agencies were operating in 2006, and only 189 of those companies
were registered with the police unit responsible for their control and supervision (including 36
organizations established by companies for their internal security, 32 providing security in
neighborhoods, and 5 private detectives). The total number of agents of all the companies
combined is estimated to be 60,000. ASEMSIPH has 18,000 contracted agents.
Private security companies may possess legal firearms and ammunition as set forth in the Law
on the Control of Firearms, Ammunition, Explosives, and Related Materials. Given the gaps
in the registers and the meager amount of information available, it is impossible to estimate the
weapons capacity of private agents. ASEMSIPH reports that the number of weapons in the
possession of its affiliates possess is about one-third the total number of agents (or about 6,000).
Private security companies provide their services to private and public clients (particularly
deconcentrated government administration entities and hospitals). Services tend to be
concentrated in banking and financial institutions, commercial and business centers, insurance
companies, stock exchanges, currency exchanges, and personal protection (executives and VIPs),
in addition to security in neighborhoods and in buildings that house organizations, including
international cooperation organizations.
The LOPN vests the Secretariat of Security with the authority to register and control private
security companies. It does not, however, maintain a register of all of the companies operating at
the national level, or their staff, or the type of weapons in their possession. There is no existing
capacity to verify the information reported by the security companies; the information is received
by the police unit responsible for control, but it is not verified.
According to Article 97 of the LOPN, in order to enter the private security services, agents must
pass exams as determined by the Police Education Directorate [Dirección General de
Educación Policial]. The Police Education Directorate, however, does not control or supervise
the capacity and training of the employees and agents working in these companies. 50 ASEMSIPH
reports that its affiliates train their personnel in the following subjects: customer service, legal
aspects, firearms handling, arrest methods, crime scene protection, public relations, bank security,
basic electronic security, and transportation of valuables, among others.
50. Castellanos, Julieta, p. 10-11
Department of Public Security 22
companies: minor, serious, and very serious. Penalties range from 5,000 Lempiras (approx.
$250) in fines for the former to 100,000 lempiras (or $5,300) in fines and a two-year suspension
of the operating license. The law does not define the infractions.
Guatemala
The two regulatory decrees, the Private Police Law (Decree 73-70) and the Law of the Security
Corps of Banking, State, and Private Entities (Decree 19-79) date back to the mid 1970s. The
Division of Supervision and Control of Private Security Companies, Entities, and Private
Individuals [División de Supervisión y Control de Empresas, Entidades y Personas Individuales
de Seguridad Privada (SCEPSP)] of the PNC is responsible for the supervision, coordination and
control of the legal and duly authorized operations of companies, entities and individuals
providing private security services, and their staff.
Private security companies are divided into two groups by sector of activity. Security, which
includes the protection of banking entities and the transportation of valuables to industrial and
commercial facilities represents the largest group. These companies also provide individual or
collective home protection–a service that mainly involves upper and upper middle class sectors–
and personal bodyguard services. Anti-kidnapping protection services are among the most sought
after, along with support and intermediation for victims of this crime. This is a highly specialized
service and it is offered by few companies.
There is considerable variety among companies in terms of human and material resources. In
some cases, they have helicopters, night vision equipment, telephone tapping devices, in-house
patrol services, electronic networks to communicate with their clients, polygraph tests, GPS
technology, and so forth.
The sector has experienced significant growth in terms of the number of companies and of
agents. In 2006, 127 legalized companies were operating in the country and another 99 were
processing the relevant permit before the Ministry of Government. Approximately 60,000 agents
were working for legally authorized companies and this number would be as high as 106,000
should the applications in process be approved. 51 Adding the number of underground operations
51. Prensa Libre 20-01-06.
Department of Public Security 23
(approximately 31), the total number of private agents would be somewhere between 120,000
and 150,000.
According to Article 70 of the Firearms and Ammunition Law, private security agents may carry
defensive weapons, 52 which must be duly registered with DECAM.
It should be noted that 75% of the security companies are directed or managed by former military
personal and the remaining 25% by former police personnel. 53 The AFPC (Art.32) sets out the
Government’s commitment to promote the law regulating the operations and sphere of activity of
private security companies, supervise their actions and the professional conduct of their
personnel, and ensure that the companies and their employees confine their actions to those they
are authorized to perform, under the strict control of the PNC. Six bills to regulate this area were
introduced in the Congress between 1996 and June 2005, but have shown no signs of progress to
date. In February 2006, the Human Rights Ombudsman appealed to the Security Cabinet to fulfill
the commitment acquired in the Peace Accords. The Law on Private Security and Investigation
Companies is currently under consideration in the Congress. The Ombudsman also pointed out
that “there are well-founded suspicions that some of these companies are used as a front for illegal
activities, including the practice of social cleansing.” In addition, as pointed out earlier, there is a
significant degree of penetration in these companies by the State intelligence apparatus.
In another report, 54 the Ombudsman asserted that “the PNC does not have enough logistical
equipment, staff, resources or vehicles to control those that are registered, much less those
operating illegally. The registers kept by the PNC are insufficient and only 10% of registered
companies are subject to control. There are no effective sanctions for companies proven to be in
noncompliance with the law.”
According to statements by Carlos Maldonado, 55 president of the Chamber of Security of
Guatemala, the gross sales of regularized companies alone total 1.3 billion quetzals (or US $160
52. Article 5 of the Firearms and Ammunition Law defines defensive weapons as semiautomatic
revolvers and pistols of any caliber, and pump shotguns and preloading and breech-loading
semiautomatics, as long as the barrel length does not exceed fifty-six (56) centimeters or twentytwo (22) inches.
53. Private Security in Central America, MINUGUA, 2002
54. In “Feminicidio en Guatemala: Crímenes contra la humanidad”, URGN, 2006
55. Albedrío.org, April 6, 2007
Department of Public Security 24
million) A UNDP study 56 indicated that, by conservative estimates, the annual expenditures of
P
companies on contracted security services hovered around Q2.6 billion quetzals (or US $346
million).
II.
Comparative analysis
The perception of insecurity experienced by most Latin Americans, and the feeling that
governments are unable to rein in rising crime, have spurred the growth of private security
services. In all of the cases studied, the industry has grown at an average rate of 8% annually in
recent years.
Growth of the Private Security Industry
by region (market values).
Region
Market
(in millions of
dollars)
49,200
Growth
(%)
Europe
37,800
6 – 10
Japan
7,400
7–9
Latin America
6,500
9 – 11
Rest of the world
16,200
10 – 12
TOTAL
117,100
7–8
North America
7–8
Source: Frigo, Edgardo (2006).
In Brazil, for example, the sector grossed US $3 billion in 2005, which reflects an annual growth
of 12%. In 2005, 2,538 security companies as well as 5,000 armored vehicles were registered in
that country. Growth in Argentina was also significant, particularly in the area of electronic
security which has grown 20% - 25% annually in recent years. As shown in the table below,
private security companies in the State of Río de Janeiro are mainly concentrated in covering
personal security, with the more recent addition of armored vehicles.
56. Costs of violence, p. 39
Department of Public Security 25
State of Río de Janeiro.
Security companies
Valuables
Armored vehicles
Guard training
transportation
courses
companies
177
12
374
19
Source: Fernando Da Cruz Coelho – based on data from SISVIP/DPF – (2006:24).
Similarly, the number of companies and private guards has risen significantly in Ecuador.
Número de empresas de seguridad privada acumuladas
por año y tasa por cien mil hab.
1200
7,00
1000
6,00
5,00
800
4,00
600
3,00
400
2,00
200
0
Núm e ro
tas a
1,00
1968 1982 1990 1995 2000 2001 2002 2003 2004 2005 2006
1
15
54
163
390
435
487
562
648
758
849
0,02
0,18
0,56
1,52
3,28
3,58
3,92
4,43
5,00
5,73
6,29
0,00
Source: Superintendency of Companies of Ecuador, 2007.
The high numbers of private guards often surpass by a wide margin the public security manpower
throughout the region. While the private associations of companies in this sector estimate the
number of legally employed guards, the even greater numbers of guards working in the informal
sector was stressed across the board. There are over a million guards in Brazil, of which only
330,000 were working in the formal sector in 2006. This might be an indication of the size of the
labor force involved in the informal sector. There are currently over 110,000 guards registered
and working legally in Argentina. Conservative estimates suggest, however, that there are an
additional 75,000 to 110,000 informal workers countrywide involved in this industry. The same is
the case in all of the countries studied.
Private security: The supervisory entity and whether police personnel may perform private
security activities.
Department of Public Security 26
Police personnel may engage in private
security activities
Yes
No
Supervisory entity
Civilian
Ecuador
Mexico
Panama
Peru
Uruguay
Argentina
Colombia*
Costa Rica
Police
Bolivia
El Salvador
Dominican Republic
Brazil
Chile
Guatemala
Honduras
Nicaragua
Source: FLACSO Chile, 2007

In Colombia the Private Security Superintendency is under the jurisdiction of the
Ministry of Defense, but has financial and administrative autonomy.
In many countries the involvement of retired military or police personnel is undeniable. In
Ecuador, current regulations establish that at least one former member of the public security
forces must be included in the company’s founding charter. They further stipulate that 25% of the
staff hired must be a former member of the public forces. In Guatemala, currently 75% of the
companies are directed by former military personnel while the remaining 25% are led by former
police. Aside from the fact that personnel linked to the public forces own the companies, it
should be noted that there are prohibitions on active duty police officers participating in private
activities. That said, some countries have tried to mitigate precarious police salaries through
parallel financial mechanisms known as “supplements” in Argentina and job banks in El
Salvador. In the latter case, a decree approved in 2001 to regulate the private security industry
stipulates that individuals associated with the armed forces or police are ineligible to participate in
the companies for three years after leaving those posts. In 2002, however, the police job bank
was established in which registered police officers may be contracted for public events or
performances. Currently 10% of the police force is participating in that program. The 1983 law
enacted in Brazil (during the military regime) does not stipulate whether State-owned companies
may hire private guards. This practice has become increasingly commonplace throughout the
country at the levels of State, local and even the federal government.
Indeed, limited or no regulation is one of the main deficiencies of the private security. In the
Brazilian case the control of these companies is in the hands of the Private Security Control
Delegation under Federal Police jurisdiction. This institution is responsible for monitoring the
actions of private companies and providing training to certify private guards. Similar to Brazil,
DPASP00006E07
Department of Public Security 27
- 26 -
Argentina also has various levels of regulation at the federal and state level, which include laws,
decrees, and agreements. In Ecuador, there is no entity whatsoever regulating the actions of such
companies. The public security law enacted in 2003 stipulates that regulatory activities shall be
shared among several institutions depending on their particular function. This law has yet to be
regulated however. In Chile the Carabineros are responsible for issuing operating permits to the
companies but a possible superintendency of private security is under consideration in the
legislature which would enhance monitoring of the actions of those companies.
There are no specific regulations in this area in Honduras. The companies are regulated under the
National Police organic law. Each company is allowed to provide its own security without need
for a license if it has fewer than 100 employees. In practice, the police exercise no control or
supervision whatsoever over the training of the employees and agents working in these
companies. The Salvadoran situation described earlier is not exceptional. To the contrary, it is a
constant in a region chronically short of human and financial resources to regulate and monitor
the development and work of private security services.
Training of private guards is an even more fragile area. In Argentina, for example, 100 hours of
training are required by law to obtain certification as a private guard. The training may be given
by Guard Training Centers, although public institutions such as the Secretariat of the Interior may
organize courses. There are many challenges pertaining to the training of private guards. First, a
primary level education is required in many cases. Second, there are no systems in place to review
the materials and practical tools for each of the guards. This circumstance is complicated by the
fact that many countries in the region allow guards to carry high caliber weapons even though
they lack the necessary training.
Department of Public Security 28