March 17, 2021
Mexican Cartels Use Crypto For Money Laundering
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Mexican Cartels Use Crypto For Money Laundering

The local law enforcement in Mexico doesn’t have enough employees in order to fight against money laundering with cryptocurrency in this country. The head of a major Mexican financial intelligence unit reported the problem days ago. The authorities in Mexico reported that the use of crypto assets for money laundry purposes surged significantly by criminal cartels in Latin America. In fact, the Mexican cartels use crypto for money laundering.

 

Authorities explain the details

Santiago Nieto, the head of Mexico’s finance ministry’s financial intelligence unit, described to Reuters on 8. Dec that how cartels use cryptocurrencies in order to launder money earned by illegal activities.

Neito stated that Latin cartels usually deposit their illegal earned money into different bank accounts for less than $7,500. In fact, the banks flag transactions, which are over $7,500. Therefore, their transactions remain as a casual transaction. Subsequently, they create numerous small transactions of BTC in order to transfer money globally.

Mexican Cartels Use Crypto For Money Laundering; The new law will help authorities

In fact, the authorities drafted a law, which force crypto exchanges to report the transactions over 56,000 Mexican pesos which is roughly $2,800. Local authorities hope that this law could help them to fight against organized criminal use of cryptocurrencies.

In fact, this law could help them to arrest a criminal in 2019. In this mission the authorities arrested a human trafficker named Ignacio Santoyo. The story was that the officers identified Santoyo and his sister deposited over $22,000 worth of Bitcoin to a local exchange called Bitso.

Moreover, the leader of Mexican cyber-hacking syndicate Bandidos Revolution Team, Hector Ortiz, accused in a similar way. In fact, he spent over $10,000 worth of BTC. As a result, the authorities could trace him by identifying his location using cell phone data.

The cyber-attack investigation unit has lack of enough staff

Rolando Rosas mentioned in his interview with Reuters that the law enforcement has the lack of enough employees in order to fight against these illegal activities. He said that the unit has only 120 staff, which almost quarter of what is required. The current staff had to deal with over 1,033 Bitcoin threshold alerts only this year.

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