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NCJ Number: 149017 Add to Shopping cart Find in a Library
Title: State Regulation of Money Exchange Houses and Money Transmitters: A Report on How the Regulation of Casas De Cambio and Giro Houses Affects Money Laundering Activity in Texas, Arizona and California
Corporate Author: National Assoc of Attorneys General
United States of America
Date Published: 1994
Page Count: 235
Sponsoring Agency: Bureau of Justice Assistance
Washington, DC 20531
National Assoc of Attorneys General
Washington, DC 20001
NCJRS Photocopy Services
Rockville, MD 20849-6000
Grant Number: 91-DD-CX-0035
Sale Source: National Assoc of Attorneys General
444 North Capitol Street
Washington, DC 20001
United States of America

NCJRS Photocopy Services
Box 6000
Rockville, MD 20849-6000
United States of America
Type: Survey
Language: English
Country: United States of America
Annotation: The role of non-bank financial institutions (NBFIs) such as money exchanges (casas de cambio) and money transmitters (giro houses) for money laundering operations and the investigative and prosecutorial efforts directed against these institutions were examined using data from sites in Texas, Arizona, and San Diego County (Calif.).
Abstract: The three sites were selected by the Bureau of Justice Assistance (BJA) in a cooperative project funded by BJA. The analysis focused on the use of NBFIs to transfer money out of the United States into Mexico and sometimes back to the United States after is has been laundered. The research also examined the use of NBFIs to serve as remittance houses for drug traffickers. The analysis that State regulation has had a mixed effect on money laundering by these institutions. Although it has not eliminated money laundering through these businesses, it has made a significant impact and has proven to be an effective tool of law enforcement. However, regulation has had the additional impact of forcing some money exchanges across the border, moving some money launderers into other unregulated business, and forcing some honest but marginal operations out of business. Initial enforcement of licensing requirements has resulted in about half of existing businesses leaving the market. The recordkeeping mandated by the regulators has been of great value to law enforcement. The Treasury Department's new rule for wire transfers will also be of value to law enforcement. Findings indicate the need for a broadly worded law to enable State licensing and regulation of money exchange and money transmitters to be effective in reducing or stopping their use by money launderers. In addition, bank officials and other State regulatory agencies must realize that they have a role in the enforcement process. Footnotes and appended State laws and other background information
Main Term(s): Criminology
Index Term(s): Arizona; BJA Grant-related Documents; California; Criminal infiltration of business; Financial institutions; Investigative powers; Money laundering; Organized crime investigation; Texas
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