Money Laundering by Drug Lords Expected to Intensify in Las Vegas

Those who believe Las Vegas is a wonderland for grownups may soon find it is also a wonderland for drug lords. According to a recent LVRJ report, “Sin City” could offer Mexican drug cartels the optimal location to get their money into the banking system and get around new laws in Mexico.

On June 15 of this year, the finance ministry in Mexico announced new anti-money laundering regulations designed to restrict the amount of U.S. dollars that banks in Mexico could legally receive.

An advisory from the Department of Treasury Financial Crimes Enforcement Network (FinCEN) notes that these new regulations are intended to mitigate the risks of laundering crime proceeds that may be tied to the trafficking or narcotics or organized crime.

The new regulations are meant to thwart the movement of bushels of cash between the United States and Mexico as a significant amount of the U.S. currency flowing through Mexico is derived from illegal activity, specifically drug sales in the United States.

As for the increased focus on Las Vegas, this is one city that is very cash-intensive, making it attractive for those drug cartels needing to get their cash into the banking system without being noticed. This will mean increased monitoring in Las Vegas will be needed.

While the IRS and other officials will pay close attention to cash-intensive establishments, including nightclubs, massage parlors, strip clubs and others, they will also rely on Currency Transaction Reports banks must file on their customers.

Their tasks will be difficult, given Nevada’s Limited Liability Corporation laws that are often used by shell corporations, drug traffickers, scam operations and money launderers in an effort to conceal identities and source finances outside of the watchful eye. It will be an ongoing battle to fight the surge that is sure to come.