Money Laundering Methods

Making Criminals Pay

Por Dialogo
outubro 01, 2010



Anti-money laundering specialist John Cassara told Diálogo that the main
money laundering methods used in Latin America are bulk cash smuggling, the
Colombian black market peso exchange, and other new financial
technologies.
Bulk cash smuggling:

This is the first method of money laundering and the simplest one in Latin
America.
Colombian and Mexican cartels generate and launder between $18 billion and
$39 billion in wholesale drug proceeds annually, most of it smuggled in bulk out
of the U.S. at the southwest border, according to the U.S. National Drug
Intelligence Center.

Financial institutions:

These are still an important step in the money laundering
chain.
Launderers put money into banks in small quantities or use money services
so they don’t trigger financial transparency requirements.

Colombian black market peso exchange:

The exchange is one of the most popular methods of laundering money in the
Western Hemisphere.
The system uses different mechanisms to move drug profits, mainly wire
remittances that are broken down and sent out.
Colombian traffickers receive Colombian pesos in Colombia in exchange for
their drug dollars from the U.S.

New technologies:

New financial products and technologies, many of which are Internet-based,
offer new opportunities for laundering, making it more difficult to be
detected.
Stored value cards, prepaid cards and digital currencies offer new methods
of laundering.

Share