Mexican drug traffickers using US businesses as fronts to disguise criminal profits

[Judi Lynn]

Mexican drug traffickers using US businesses as fronts to disguise criminal profits
By The Associated Press
on October 11, 2014 at 11:10 PM, updated October 11, 2014 at 11:18 PM

CHULA VISTA, Calif. -- For a company that booked $12 million in annual sales importing snacks like chile- and lime-flavored chips from Mexico, Baja Distributors Inc.'s offices were oddly quiet. There were no signs outside. Its small warehouse was almost empty. Phones went unanswered.

Investigators say there was a reason for the anonymity: The business was laundering money from Mexican drug traffickers. Baja Distributors, whose executives denied laundering drug money, brought more than $17 million from Mexico in 18 months.

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, became a magnet for cash coming to the country from Mexico, according to an Associated Press analysis of customs declarations since 2009.

More:
http://www.al.com/news/index.ssf/2014/10/mexican_drug_traffickers_using.html

[bemildred]

1. "No shit, Sherlock!"

Prohibition creates a black market, a black market produces dirty profits, dirty profits need to be laundered back into the clean economy. There are some franchise chains that that's their main business plan, selling chain franchises to launder money through in little out of the way towns.

[Demeter]

2. I suspect it's not just the Mexicans

I think there's money out of the Middle East getting laundered through Palestinian small businesses, too.