Yes, it can be. This is exactly the kind of question that sends me to a dictionary, and let me say that in my experience, the more English somebody knows, the MORE likely they are to use a dictionary. In the American Heritage dictionary online, I am surprised to find that the FIRST definition listed is the one used in your passage.
"1. To involve or connect intimately or incriminatingly: evidence that implicates others in the plot."
The one I thought was the most common definition is actually the SECOND:
"2. To have as a consequence or necessary circumstance; imply or entail: His evasiveness implicated complicity."