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JOURNALS of Monte Friesner >

Financial Crime Consultant for WANTED SA >

Monday November 15, 2010 >

WANTED SA is pleased to post articles ** With the Compliments of Mr. Kenneth Rijock. 


DIFFERENT ANGLE by Kenneth Rijock >

Financial Crime Consultant, for World-Check

Watch for Roundtripping Drug Proceeds in US Banks

Mexican authorities have stated that there has been a 75% decrease in deposits of US Dollars at Mexican financial institutions, since new reporting requirements, and ceilings on dollar transactions went into effect a few months ago. That's a major improvement in Mexico, but it is apparently having a knock-on effect in the United States, where Mexican casa de cambio wire transfers into American banks have increased, by unofficial count. These funds are generally engaged in a technique known as roundtripping, meaning that, once they are safely in a US bank, orders arrive to transfer the funds abroad, often to a Caribbean tax haven bank. Until US banks demand ownership information on those incoming funds, they get a free ride. Are you unwittingly facilitating that type of money laundering ? 

Though obviously some of the narco-dollars that are bulk cash smuggled into Mexico from the Continental United States are transshipped into Panama, Colombia and Venezuela, look for more "repatriated" drug profits into the US from casas de cambio controlled by money launderers working for drugs cartels.

Now that we are only the subject, exactly why are you accepting those wire transfers from Mexico at your American bank, especially after the Wachovia Bank case demonstrated that US regulators are focused upon Mexico ? The risk levels for that type of business are extremely high, given that a number of US law enforcement agencies and regulators, intent on border security and bulk cash smuggling issues, will be looking at these transactions very closely. It is now time to abandon that lucrative business for risk management reasons.

Frankly, I cannot understand why any North American bank accepts casa de cambio money unless they have thoroughly vetted the firm, and established, beyond any doubt, that it is not controlled by organised crime. That means personal visits, gentlemen, something that i know you are not currently doing. Otherwise, close the accounts. whilst there are  a number of reputable casas, you need to prove that the ones you bank are above reproach; good luck.

***   The facts and opinions stated in this article are those of the author and not those of World-Check. World-Check does not warrant the accuracy of any facts and opinions stated in this article, does not endorse them, and accepts no responsibility for them.

WANTED SA thanks Kenneth Rijock and all the parties, 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.