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From the Editor: ICE’s Use of Prepaid Card Readers Reportedly on Hold – Indefinitely
printLast fall, we reported that the U.S. Immigration and Customs Enforcement would begin testing prepaid card readers at border crossings around the country as part of a broader effort to identify when criminals exploit the cards to smuggle money. The rollout for testing followed a July 2011 rule by the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) imposing anti-money laundering (AML) duties on prepaid access sellers and providers, as well as an October 2011 proposed rule by the bureau that would require border crossers to disclose when they enter or leave the country with more than $10,000 in value...
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Law enforcement officials in most U.S. states have quietly deployed controversial handheld scanners as part of an effort to interdict suspicious funds held on prepaid cards and other magnetic-stripe products.
Prompted by signs that criminals are increasingly exploiting prepaid cards, federal and state investigators are turning to a handful of recent legal decisions to justify reading the value held on the instruments, sources say.
An amended version of a long-delayed U.S. Treasury Department proposal to place new controls on the international transport of prepaid cards is under White House review and slated for introduction within three months.
A congressionally-mandated plan to require U.S. border crossers to declare funds held on prepaid cards remains stalled at the White House more than a year after its submission for final review.
The rise of online vendors offering to buy bulk gift cards is drawing the attention of investigators who believe the nascent industry may serve as an avenue for money launderers.
The theft of $45 million by cybercriminals exploiting and manipulating stolen prepaid card data highlights weaknesses in how financial institutions monitor the use of stored value products, say security experts.
U.S. lawmakers Thursday criticized federal officials for delays in finalizing anti-money laundering rules and failing to prosecute banks and bankers that facilitate billions of dollars in illicit transactions.
Lobbying by the world's largest stored value payment facilitator has indefinitely delayed, and perhaps permanently blocked, a plan to give customs officials the ability to read prepaid cards, say sources.