Tuesday, September 15, 2009

Prepaid Credit Cards are being used to move illegal funds to Mexico

According to this article in Aztarnet.com smugglers have been using prepaid cards to export illegal funds to Mexico. Arizona Attorney General Terry Goddard mentioned that currently there is no legislation or laws regulating prepaid credit cards, so launderers have done exported funds with incredible ease without violating any laws.

The Attorney General also stated that most of the cards are issued from offshore banks in the Dominican Republic, Panama, and the Cayman Islands. The problem with the cards is that they can be loaded up anonymously and so it can be harder to trace. He plans on creating legislation that would make carrying more than $10,000 across the border of Mexico on prepaid cards illegal. Looks like only time will tell if such a regulation will ever be passed in the near future.

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