War Against Drug Money Entering US from Mexico Takes a Turn, Banks Back in Picture Fox News Latino
go to original October 12, 2014

Law enforcement agents after a raid in the Los Angeles Fashion District, Sept. 10, 2014. (La Garc)

CHULA VISTA, Calif. –  U.S. front companies for cartels aren't new, but U.S. officials say they took a more prominent role after Mexico capped dollar deposits in cash at $7,000 a month for businesses in 2010, later raised to $14,000. As a result, they say, cartels sought companies to deposit money in American banks and wire it back in pesos under the guise of international trade.

San Diego, the largest American city on Mexico's border, had become a magnet for cash coming to the country from Mexico, according to an Associated Press analysis of customs declarations since 2009.

But now the rules of the game have changed.

As of last month, the Mexican government no longer limits the monthly cash deposits of U.S. dollars that border businesses can make if the companies allow authorities to monitor their financial transactions and meet other requirements.

In making the announcement, President Enrique Peña Nieto said the limit has only hurt honest businesses.

The new measure has sparked concern among some U.S. officials that cartels may go back to walking into Mexican banks to deposit sacks of drug-tainted dollars.

Read the rest at Fox News Latino

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