Mexican laundering @ $19 billion
A new U.S.-Mexico government study estimates that $19 billion to $29 billion is shipped south, then laundered through cash purchases of land, luxury hotels, cars and other high-end items. Remember the recent arrest of Cancun mayor for aiding criminal groups setting up shop in Cancun? The amount of money involved shows the (financial) power of the drug cartels. More than half of the amount is guesstimated to be smuggled to Mexico and invested in cash.
The cash is brought into Mexico both in amounts small enough for an individual to carry and in amounts large enough to fill shipping containers. Revenue from local dealing operations across the U.S. is first consolidated in cities that serve as “collection points,” including Los Angeles, then moved to the border and broken up again for the cross-border leg of the transport.
In Mexico, where 75% of the formal and informal economy works through cash transactions, cartel bosses can launder their profits with all-cash purchases of large tracts of land, luxury hotels, cars, car dealerships and an endless array of high-end items.
The fight between the Mexican administration and the cartels claimed around 27,000 lives. As we speak the Mexicans are still not able to stop the violence, the inflow of money and related corruption.
http://articles.latimes.com/2010/jun/03/world/la-fg-mexico-cash-20100603
http://financialcrimeonline.com/archives/886
