Blog#7- Mexico is Making Positive Strides to Cease Money Laundering by Drug Traffickers

An anti- laundering bill was unanimously passed by Mexico’s senate in anticipation of halting a multibillion dollar flow of cash that supports criminal activity from drug cartels. The bill has been under consideration for over two years and possibly would give Mexico headway in their war against narco gangs.  Under President Felipe Calderon’s administration, more than two-thirds of Mexico’s most-wanted drug capos have been killed or captured but attempts at hitting their bank accounts have been unsuccessful. The President wrote a Tweet to the legislature indicating, “This will allow us to cut the economic resources of organized crime, this is big news.” The anti-laundering bill now waits to be signed off by the President. There will be new requirements for reporting major transactions such as: Big money bets reported by casinos, generous donations reported by charity groups, and report any high dollar sales of boats, cars, airplanes, and jewelry. Real-estate purchases are prohibited by using cash, big credit card bills have to be reported by banks, and notaries have to report any suspicious activity. According to U.S. officials, Mexican drug cartels send $19 billion to $29 billion in cash derived from illegal activity from the United States to Mexico every year, while Mexican officials estimate it to $50 billion.

Money laundering contributes to many global social problems. This is not only an issue for Mexico but for other countries as well. Recently attempts by the U.S. to cease money laundering by drug traffickers have shown to be successful with an amount of $31 million dollars seized.  A total of nine American banks and three Peruvian bank accounts were frozen that belonged to the Sanchez-Paredes Family, a family that Peruvian law enforcement have been investigating for drug dealing. The family covered up many of their illegal proceeds through the financing of businesses.

Mexico’s anti-laundering bill will contribute to their efforts to cease organized crime however; it may likely have negative effects on their economy. This bill could also contribute to the reduction of drugs going into the United States and thus reduce crime. If the financial foundation of criminal activity is ripped out from under money launderers, it will create more barriers for the trafficking of drugs and other illegal activities.

 

http://latimesblogs.latimes.com/world_now/2012/10/mexico-senate-drug-trafficking-cartel-approvedmoney-laundering-bill-.html

http://www.examiner.com/article/over-31-million-seized-from-international-drug-and-money-laundering-scheme