Hacking the System: Cartel Money Laundering

In the drug smuggling business, there is no easy way to safely and inconspicuously transfer the large amounts of money consistent with the trafficking business. The cartels are ingenious in their methods of moving money across country boarders. Up until now, the main methods for laundering money were fake businesses, smuggling across the boarder, and online transactions. These are all good methods of trying to hide the criminal activity. However, those participating in this money laundering scheme often lose are are discovered by the authorities. They lose money because when the authorities discover their schemes them confiscate the money and use it to further their narco-trafficking organizations.

The cartels have begun a new method for transferring money from the states to the country where the cartel is located. The most recent trend that the authorities have caught onto is a scheme involving scrap metal. The cartel members in the states are purchasing scrap metal and jewelry and sending it to refinery plants. They are then collecting this money and sending it back to the other parts of the cartels outside the US. This is a brilliant way to launder money because there is a paper trail leading back to the refinery then to the person who simply sold scrap metal to them. This is good for cartels but bad for the authorities. The only way that they discovered this scheme is when the cartels attempted to cut out the middle man and have the refineries send the money directly to them.

Read the full article here

-Aaron McKim

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