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Date: April 30, 2024 Tue
Time: 3:08 am
Time: 3:08 am
Results for illicit drugs (u.s. and mexico)
1 results foundAuthor: Ferragut, Sergio Title: Organized Crime, Illicit Drugs and Money Laundering: the United States and Mexico Summary: Organized crime permeates the life of every single country in the 21st century: its global revenues are well above a trillion dollars a year and illicit drugs are a major component of this. Drug prohibition, in effect for almost a century, has not been the deterrent to consumption it was intended to be, and the illicit drug trade has become the most profitable source of revenue for criminal organizations in many countries. This paper reviews the US-Mexican illicit drug landscape and documents the importance of this criminal activity in both countries. The United States is the primary market for illicit drugs in the world and, because of their shared 2,000-mile border, Mexico has become the number one provider of illicit drugs. More than 40 years after a ‘war on drugs’ was declared by President Richard Nixon in 1971, the flow of drugs into the United States has not been eliminated or even reduced. The law of supply-and-demand has prevailed, as should have been expected. The illicit proceeds from drug trafficking in the United States and Mexico, as with those from any criminal activity, must be laundered by criminal organizations so that their assets cannot be traced back to their origins. In recent times anti-money laundering (AML) initiatives have been at the core of the fight against organized crime around the world. Back in the 1980s it was not unusual for a drug trafficker in the United States to walk into a bank with a suitcase full of cash and have it immediately deposited into an account. At that point the money would start a journey from bank to bank and country to country, and tracing its origins became very difficult – the money was effectively laundered. During the past two decades the international financial system has been tightened and today it is much more difficult to launder money through it. However, dirty money continues to be laundered through other channels. The current controls and best practices implemented within the financial system are a necessary condition to combat money laundering; nevertheless, they are not sufficient to curtail it effectively. It is crucial that the authorities look beyond the financial system and into enterprises that accept cash as tender if AML initiatives are to be successful in depriving organized crime of the fruits of its crimes. For at least three decades the laundering of drugs-trade proceeds in Mexico has been transferring economic and political power into the hands of individuals and groups with questionable credentials; billions of dollars have been laundered in the country by drug traffickers and their business partners. This phenomenon poses a potentially serious threat to public and national security in Mexico and the United States; the newly acquired economic strength of these criminal groups positions them to influence the political landscape and acquire significant ownership positions in strategic industries. This paper illustrates how it happens and highlights some of the options available to the authorities to address the challenge. Details: London: Chatham House, 2012. 30p. Source: Internet Resource: The views expressed in this document are the sole responsibility of the author(s) and do not necessarily reflect the view of Chatham House, its staff, associates or Council. Chatham House is independent and owes no allegiance to any government or to any political body. It does not take institutional positions on policy issues. This document is issued on the understanding that if any extract is used, the author(s)/ speaker(s) and Chatham House should be credited, preferably with the date of the publication or details of the event. Where this document refers to or reports statements made by speakers at an event every effort has been made to provide a fair representation of their views and opinions, but the ultimate responsibility for accuracy lies with this document’s author(s). The published text of speeches and presentations may differ from delivery. International Security Programme Paper 2012/01: Accessed January 23, 2013 at: http://www.chathamhouse.org/sites/default/files/public/Research/International%20Security/1112pp_ferragut.pdf Year: 2012 Country: United States URL: http://www.chathamhouse.org/sites/default/files/public/Research/International%20Security/1112pp_ferragut.pdf Shelf Number: 127370 Keywords: Drug TraffickingIllicit Drugs (U.S. and Mexico)Money LaunderingOrganized Crime |