Turning dirty cash from drug sales into clean, usable currency has become harder for Mexican drug gangs as a result of tighter banking regulations at home and in the U.S. However, the latest money laundering schemes are piggy-backing on cross-border trade.
1. What is a “suspicious activity report” filed by banks in the U.S. and where did most of these come from?
2. Small manufacturers and cash deposits are not the only place to look for Mexican drug laundering. What other places does this article indicate should be examined?
3. Explain the simple scheme of money laundering used by those arrested in Los Angeles on Sep. 10.
The Economist staff. (2014). Mexico’s Drug Cartels Have An Ingeniously Simple Method Of Laundering Money. Business Insider, Sep. 21 (Retrievable online at http://www.businessinsider.com/laundering-mexicos-drug-money-washing-up-2014-9)
YouTube.com video. (2013). Money laundering, Explained. Global Financial Integrity, Oct. 17 (Retrievable online at https://www.youtube.com/watch?v=ChNpq9QbMRY)