Organized crime syndicates are employing the channel of remittances, which are money transfers commonly used by migrant workers, to funnel their illegal profits into Mexico, a Reuters News Agency investigation found.
The cartels enlist numerous individuals on both sides of the U.S.-Mexico border to facilitate the movement of small, inconspicuous amounts of money, making it challenging to track them back to the leaders of the narcotics operations, law enforcement officials told the news agency.
Information in the report stems from two dozen interviews conducted with Mexican residents who claim to have participated in this scheme. The news story also draws on records from U.S. federal court cases as well as interviews with industry insiders, analysts, and law enforcement agents on both sides of the border.
The article said that between 7.5% and 10% of all remittances could potentially come from illegal activities. While the majority of remittances are still legitimate, this portion represents a significant channel for money laundering by cartels.
Remittances from the U.S. to Mexico have increased dramatically during President López Obrador's tenure, reaching a record $58.5 billion last year, the article said, adding that the ease with which cartels can integrate illicit funds into these flows has grown due to this surge in legitimate remittances.
According to Reuters, remittances sent to Mexico constitute a significant 4.3% of the entire GDP of Mexico, making them an attractive avenue for cartels seeking to launder their money.
