Exemptions for Mexican hotels and other businesses from Mexico's limits on U.S. dollar deposits can be readily exploited by narco-traffickers and money launderers, say compliance professionals.
American officials are investigating whether banks accepting cash declared by individuals entering the United States from Mexico are filing regulatory reports with the U.S. Treasury Department, say compliance professionals.
A broad anti-money laundering measure that would create and strengthen criminal penalties and impose reporting requirements on non-bank institutions in Mexico is likely to pass into law this month, say former government officials.
Thousands of lightly regulated currency exchange centers in Mexico are suspected of laundering criminal proceeds for drug trafficking organizations, according to analysts and former Mexican government officials.
Despite reports that 30 percent of Mexico's currency is derived from illicit funds, many compliance officers are just now waking up to the reality of the country's extensive money laundering problems, according to an AML consultant who works with MSBs.