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Failure to Regulate Prepaid Value Aids Mexican Drug Cartels, Says U.S. Senate Caucus
By Colby Adams
printA dearth of U.S. Treasury Department regulations governing the cross-border transportation of prepaid access products has hamstrung American efforts to combat Mexican drug-trafficking organizations, according to lawmakers. In a 67-page report from the U.S. Senate Caucus on International Narcotics Control published May 25, lawmakers criticized the department for failing to adequately implement the Credit CARD Act of 2009, which imposed anti-money laundering (AML) rules on the products, including controls on their international transport. The department's Financial Crimes Enforcement Network (FinCEN) proposed rules in June 2010 that would regulate the sale and redemption of stored value products but not the cross-border...
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