After he was released, Chavez [UID 403912] fled to Bolivia, where he received political asylum in 1992. He later claimed that he had no ties to the traditional Marxist-Leninist MRTA [UID 2209], though he had admitted that he was at that time a Marxist philosophy student in Peru. MRTA is best remembered in Peru for its role in the 1997 Japanese Embassy Hostage Crisis. 

The terrorist charges remained pending against him, and Peru sought his deportation in 2002. It was reportedly blocked by Bolivian legislators from Morales' political party, Movimiento al Socialismo (Movement Toward Socialism), or MAS [UID 9268], who

Chavez, who formerly edited a radical column in a newspaper he founded, Juguete Rabioso, or Angry Toy, has been a member of Morales' inner circle since early last year. Given his current role as a close personal advisor to President Morales, his extradition is not likely to be granted in the immediate future. Walter Chavez' continuing role in the Morales government will certainly be an impediment to closer relations with Peru, and his presence as a part of the inner circle only confirms its political orientation.

Compliance officers at international banks who clients transact business with Bolivia are already well aware of the presence of "terrorist affiliates" in that country; NGOs, radical political parties and other non-profits who provide financial support to designated terrorist organisations in the region.  Walter Chavez' favoured status in Bolivia is but one more red flag to remind us to be alert for such supporters of terrorist financing.