Between 2008 and 2012 a group of Florida-based drug traffickers tied to a Mexican cartel laundered their dirty cash by depositing it into accounts at a local branch of a national bank. The traffickers’ Texas-based suppliers then withdrew the money from the accounts as cash and turned it over to couriers who smuggled it into Mexico.
Financial Regulatory Forum
Need for focused and consistent enforcement drove IRS decision to stop seizing ‘structured’ deposits, official says
The Internal Revenue Service’s recent decision to stop using civil enforcement powers to seize legitimate money deposited into bank accounts in a clandestine manner stemmed from a review process that revealed a need to make better use of agents’ time, the law enforcement official who enacted the new policy said Sunday at a money laundering conference in Washington.
An announcement by the Internal Revenue Service last week that it will no longer try to seize and forfeit money from those who merely evade government-mandated paperwork when making large cash deposits has ignited a debate about the value of bank efforts to document such acts.
By Martin Coyle
LONDON/NEW YORK, May 17 (Thomson Reuters Accelus) – Counter-money laundering officials have welcomed a London High Court decision that saw wealthy Zimbabwean businessman Jayesh Shah fail in his $300 million claim against HSBC Private Bank. Yesterday’s judgment is a relief to financial businesses who feared the impact of a Shah victory on overhauling their processes for suspicious activity reporting.