Follow the cash

No, not the page 1 story of million households affected by the breach at J.P. Morgan, although that’s worth a look.

Instead, in an effort to crack down on money laundering by Mexican cartels, fashion houses in a 100-block area of LA will be required to report cash transactions of $3,000, rather than the usual limit of $10,000.

“Fashion District Faces Crackdown,” Wall Street Journal, October 3, 2013 A2. Steps taken to “collect more information so we can understand the scope of the problem.”  Looking for transactions where the cartel supplies US dollars to garment businesses in the US, to be repaid in pesos after selling goods in Mexico, thus laundering drug proceeds.

What if the government changes the rules just to see if there’s a problem?  Is this just the government putting a canary in the coal mine? How does this information show illegal activity?  Or does merely asking for the information have the desired impact?  Are any of your information requests similar?

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Filed under Compliance, Controls, Definition, Information, Risk

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