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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Usefulness of Prepaid Credit Cards

When asking the question about the usefulness of prepaid cards, this author came up with these answers:

- No credit checks so having many will not affect your credit score

- While abroad you can withdraw money in the native currency

- Can’t go into debt!

- Safer for online use since Hackers can’t charge an exorbitant amount

- And you can obtain one even with bad debt!

What are other thoughts you have about the pros and cons of prepaid cards?

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