Narcotics supply chain disruption may push drug dealers towards TBML operations

Chaos in the illegal narcotics trade’s supply chains and financing operations due to coronavirus pandemic impacts may push drug barons towards trade-based money laundering (TBML) operations.

Proceeds of drug sales in the US on their way to Mexico and beyond as well as drugs bound for the US market are reportedly being stockpiled along the US-Mexico border.

Smuggling thwarted

Huge amounts of drug money are routinely smuggled from the US to Mexico and beyond across the bustling border.

Now the border is quiet and cash from drug sales lies there stranded until either traffic flows again or the drug traders find different ways to repatriate their illegal earnings.

Black-market peso exchange

One way probably under consideration is the black-market peso exchange type of TBML operation.

This is already well used by Los Angeles Fashion District companies who import apparel and textiles into the US or manufacture goods in the US with dollars illicitly earned there by the drug cartels.

Those goods are then exported, typically to Mexico or Colombia, and sold at local stores for pesos that are then deposited in domestic accounts attached to the drug cartels.

Categories: Trade Based Financial crimes News

%d bloggers like this: