“DRUG CARTELS USE PREPAID GIFT CARDS TO LAUNDER MONEY” >
FROM THE -
JOURNALS of Monte Friesner ~ Thursday December 09, 2010 >
Financial Crime Consultant for WANTED SA >
WANTED SA has learned this morning that Prepaid Gift Cards are one of the most popular gifts this time of the year, but the cartels see dollars sign on those cards too.
Many Anti-Money Laundering Specialist, especially our firm has uncovered several Iran front companies and state that the cartels are using these cards also to launder money. This loophole and others that need to be closed immediately.
WANTED SA goes on to say the balances can be transferred into an established account and then the money is laundered. The cartel uses the cards as a payment for smuggling individuals and drugs.
The money laundering laws were last updated in 2003. The Government Accountability Office Financial Crimes Enforcement Network doesn't have the regulations to stop the crime.
For example, one has to tell a customs officer if they are carrying $10,000 or more in cash across the border. But, you don't have to do the same thing with these cards.
WANTED SA says the solution is to ID everybody who buys the cards, as is being conducted by a financial institution in the Republic of Panama.
WANTED SA says the banks are trying to monitor the cards by tracing and tracking the serial numbers. Even after the card is sold, it’s not too late for banks to report that activity to the government. Banks do this to create a paper trail to find the bad guys.
The Government Accountability Office says the Financial Crimes Enforcement Network is developing regulations to close the loophole on the disposable cards. WANTED SA added that countries and US States are trying to plug the holes until the Federal Law changes.
WANTED SA thanks to all the staff at the Associated Press, and all the Parties, Press, Journalists, Law Enforcement and Securities forces who have contributed to this article and their sincere opinions and statements.
WANTED SA states that the facts and opinions stated in this article are those of the author and not those of WANTED SA. We do not warrant the accuracy of any of the facts and opinions stated in this article nor do we endorse them or accept any form of responsibility for the articles.