The U.S. Treasury Department on Tuesday directed hundreds of electronics companies near Miami to comply with enhanced cash reporting requirements as part of a federal effort to expose a trade-based money-laundering scheme. Mexican drug cartels, including Sinaloa and Los Zetas, are using drug profits to purchase cell phones and other electronics from South Florida businesses and shipping them to South America, where the goods are sold for local currency, the department's Financial Crimes Enforcement Network (FinCEN) said, in a statement. Beginning April 28, the roughly 700 electronics companies affected by the bureau's Geographical Targeting Order (GTO) must collect and report...
U.S. officials are likely to gather a wealth of data from the imposition of newly-mandated reporting requirements but may have limited means to directly enforce compliance with the rules, according to government sources.
Hampered by restricted access to international wire data, U.S. federal officials are hoping to shine a light on a suspected money-laundering ring through reports on cash payments in Miami's electronics sector.
Companies linked to an ongoing trade-based money laundering operation in the Los Angeles fashion district are willing to break the law again, provided their payouts are more effectively disguised, an investigator said Tuesday.
The U.S. Treasury Department said Friday that, in response to law enforcement concerns, armored car services and other couriers transporting cash between Tijuana, Mexico and San Diego, California must comply with enhanced border declaration requirements.