Money laundering and counterfeiting by terrorist and drug traffickers

 move money without fear of identification or seizure.
The El Universal newspaper in Mexico City today 4
 28/09 reported that what they refer to as
Global terrorist organizations are teaching the Mexicannarcotraffickers (MDC’s) are using prepaid value
Drug Cartels (MDC) new ways to launder their millionscards to send money from the US to Mexico
of dollars of drug money profits.because this financial instrument is not subject to the
For years terrorist used systems of honor amongusual measures against money laundering, according
themselves and would transfer money in person handto Arizona state Attorney General Terry Goddard.
to hand the same way Muslims have been doing it ”This is something that is happening on our
for centuries. It is very hard that way to detect andborder, cards that are being provided by a few
it leaves no paper trail.financial institutions, not major banks, but those that
For a short while when expensive new color copiersoperate at a lower level,” he said during an
first come onto the since the terrorist copied moneyinterview.  The Prepaid Store Value Cards (as they
very well, these new machines could copy money soare called in the US) are not defined as
well it was hard to detect. So the feds made the“monetary instruments” for money
manufactures develop and install new detectionlaundering and narcotrafficers is taking advantage of
devices that when money was placed on the bed ofthat, knowing that the cards will not be inspected at
the copier it would shut down or alarms would go offthe border.  All who cross the border from the US
or both.to Mexico must declare if they are transporting more
Before the copy machines, PC’s and printers,than $10,000 in cash?  Such people can carry more
counterfeiting was a difficult and expensive endeavor.than a million dollars in value cards and are not
You had to have money and lots of it to get startedrequired to declare it because they are not breaking
because it required large expensive printing pressesany law, Goddard emphasized.  In his opinion, the
and the talent and ability (rare) to cut intricatecards should be inspected at the border and the
designs by hand into metal plates. But today as Iamount contained in them deciphered electronically.
write this it is much easier to create counterfeit bills If the cards could be regulated, it would be another
and launder them by having several people passblow to smugglers and narcotrafficers.  ”This
them off to product and service providers. Asmoney is the fuel that is feeding the violence,”
thousands of teenagers have discovered so have thehe said.
terrorist and now the MDC’s. You can nowArturo Mendicuti, president of the Chamber of
create fake money with a PC, a scanner and a colorCommerce Services and Tourism of Mexico City
inkjet printer in about 10 minutes.reported 777 million peso [56 million US] per day loss
The terrorist barrowed from the American CIA thein the city’s businesses.  Hotel occupancy is the
system they have used successfully for decades andlowest in the past 16 years, between 5 and 10
the CIA are still using today. Which is investing in newpercent.  The decline is now mainly attributed to the
start up business and expanding legal existingflu epidemic scare but many believe the war on drugs
businesses than deposit the cash into those companygoing on in Mexico is also a big contributor.
bank accounts and transfer the money to offshore Restaurants are now can only take order for food
banks that they control? ­Money lau­nderingas to go orders that is to say the customer can not
happens in almost every country in the world, and aeat the meal at the restaurant but can only come
single scheme typically involves transferring moneyand pick it up.
through several countries in order to obscure itsNew American money has high-tech counterfeit-proof
originsbills so the U.S. Treasury claims. It first entered
However that you can not do anymore as the U.S.circulation in late 2003. Yes, it is detectable but million
and UK governments have persuaded off shoreof dollars worth of counterfeit bills are still being
havens and jurisdictions to sign new treaties thatpassed on a daily bases.
forbid that way of banking and made it illegal to notIt is true should you have real good eyes or a
report even the attempt to the American authorities.microscope and if you zoom in on different areas of
As a result the global financial systems now play athe bill and look at them closely, in good light you can
major role in most high-level laundering schemes, thesee a number of features designed to deter "casual
international community is fighting money launderingcounterfeiting." But who do you know who does
through various means, including the Financial Actionthat? Most passing of those bills happen in dark
Task Force on Money Laundering (FATF).places like bars and other like type places. There are
So now they are coming up with new ideas anddetector pens and roll over detectors but few
ways to launder huge amounts of cash.retailers use them.
Money laundering, at its simplest, is the act of makingThe amount of counterfeit money being passed daily
money that comes from Source a look like it comesby the terrorist and the drug dealers is not known
from Source B. In practice, criminals are trying tobut it is believed to be astronomical. And remember
disguise the origins of money obtained through illegalthe really perfect counterfeit bills are never detected.
activities so it looks like it was obtained from legal­­Money Scam Image Gallery
sources. Otherwise, they can't use the moneyDepartment of Justice
because it would connect them to the criminalFederal Bureau of Investigation
activity, and law-enforcement officials would seize it.Sources:
­­Money laundering is a crucial step in the success U.S. Department of Justice National Drug Intelligence
of drug trafficking and terrorist activitiesCenter
An assessment by the U.S. Department of JusticeArturo Mendicuti, president of the Chamber of
National Drug Intelligence Center regarding PrepaidCommerce Services and Tourism of Mexico City
Store Value Cards reported that the cards provideU.S.
an ideal money laundering instrument to anonymously