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Money Laundering in Mexico: The Struggle to Track Illicit Gains

Jul 5, 2013 | 10:21 GMT

Money Laundering in Mexico: The Struggle to Track Illicit Gains
Authorities seized more than $1 million and more than 41 million pesos on June 15, 2012.

(Ronaldo Schemidt/AFP/GettyImages)

Summary

In its fight against organized crime, the Mexican government is going after what is perhaps most valuable to criminal enterprises: their money and their bank accounts. On June 17, the government confirmed a new money laundering law that will help prevent cartels from washing their proceeds so easily. The law will take effect sometime around March 2014.

The new law will not bring an end to all money laundering operations in Mexico. Money launderers no doubt will adapt to and circumvent the new regulations. They may be able to use existing tactics less affected by the legislation, or they may exploit money laundering avenues outside those of their most reliable associates in the United States. However, improving the economy is a priority for Mexican President Enrique Pena Nieto, and if he can at least make such operations more difficult for criminal organizations and the corrupt businesses with which they transact, he may be able to improve the image of his country's regulatory environment enough to attract more foreign investment to Mexico.

If properly enforced, a new law may instill confidence in those considering investing in Mexico....

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