Chikli said he laundered 90 percent of his money through China and Hong Kong.
A soldier stands inside a raided pawn shop while under investigation for money laundering in Tijuana November 25, Treasury put Grupo Collins on a black list insaying the firm supplies a small drug cartel in western Mexico with chemicals needed to make methamphetamines.
To put that in perspective: Mexico probably made more money in moving drugs than it did exporting oil, its single biggest legitimate foreign currency earner.
From the white Caribbean beaches of Cancun to violent towns on the U.
Now residents in the region known in Mexico for its piety say drug smugglers barely make an effort to disguise themselves. A strip of fancy boutiques in Zapopan was financed with drug money, says Jaime Ramirez, a local newspaper columnist who has been reporting on the drug world for two decades.
As well as the Grupo Collins factory in Zapopan, a nearby car wash is also on the U. A local cemetery draws relatives of traffickers who were among the 17, people killed in the drug war in Mexico since The plant was advertising a job opening on the company web site for a machine room technician.
But Tirado has previously denied the charges in the Mexican media. A well-known Mexico City restaurant specializing in the spicy cuisine of the Yucatan peninsula was added to the U.
Drug money has also fueled part of a real estate boom around tourist resorts such as Cancun, said a senior U. An architect in the city of Tijuana did well out of designing buildings that cartels would build and rent out to legitimate local businesses. Craving acceptance, the drug gangs even throw their money at acquaintances to get them on the social scene.
A drug trafficker pays his friend Roberto, who declined to give his last name, to keep him connected in Tijuana and introduce him to women.
In the wealthy shopping areas of Interlomas, near Mexico City, the Perfect Silhouette spa offers breast implants.
Staffed by young women in loose-fitting white suits, the spa also sells weight-loss creams and offers massages. Treasury recently said it was part of the financial network of the Beltran Leyva cartel, whose leader was gunned down by elite Mexican marines in December.
A woman Delgado identified as the owner did not return a phone call requesting an interview. Businesses enlisted to launder drug money typically get a cut worth 3 percent to 8 percent of the funds passing through their books, the U. During the global financial crisis last year, those assets provided valuable liquidity, says economist Guillermo Ibarra of the Autonomous University of Sinaloa.
Indeed, drug money in banks is a global phenomenon, not just in Mexico. While Mexico is confiscating more drugs and assets than ever under President Felipe Calderon, forfeitures of money are still minuscule compared to even low-ball estimates of the amount of drug money that flows into Mexico.
Mexican bank secrecy laws make it particularly difficult to go after drug money in financial institutions, Najera said. Ibarra crunched numbers on monetary aggregates across different Mexican states and concluded that more money sits in Sinaloan banks than its legitimate economy should be generating.
Edgardo Buscaglia, an academic at Columbia University, recently scoured judicial case files and financial intelligence reports, some of which were provided by Mexican authorities.
Even though cartels are clearly creating jobs and giving a lot of people extra spending money, some of these economic benefits are neutralized by a raging drug war that has scared investors.
About a dozen foreign companies in Ciudad Juarez, across the border from Texas, are postponing investments in factories there because of regular gun battles in the city, said Soledad Maynez, who heads a local factory association.
Business leaders say thousands of shops have closed in Ciudad Juarez because of the violence. Another problem the economy could face is that drug funding could one day fall if authorities cracked down on money laundering or somehow wrenched power away from the cartels.Mar 28, · ASHDOD, Israel (AP) – Scam artists, drug cartels and gangs from around the world have found a new haven for laundering money: China.
The country's well-developed underground financial networks. The analysis measures the number of drug-traffic employees, the amount of cash and investments generated by the drug-trafficking industry, the monetary costs of violence and corruption, the estimated losses in foreign investment, and the costs generated by local drug abuse.
The illegal drug trade or drug trafficking is a global black market dedicated to the cultivation, manufacture, distribution and sale of drugs that are subject to drug prohibition laws. Most jurisdictions prohibit trade, except under license, of many types of drugs through the use of drug prohibition laws.
Dec 04, · D.E.A. Launders Mexican Profits of Drug Cartels. December 4, 1 Comment. Filed under World Tagged with DEA, DEA launders drug money, drug cartels, drug money, mexican drug cartels.
The Real Agenda encourages the sharing of its original content ONLY through the use of the tools provided at the bottom of every article. Since Mexican President Felipe Calderon took office in September , there have been well over an estimated 13, drug-related killings in the country.
The killings are tied to Mexican drug cartels, which supply vast amounts of marijuana, methamphetamines, and cocaine primarily to U.S.
markets. Mexico’s drug-traffic industry is a highly profitable, diversified business. Concentrated in the production and distribution of three main products -marijuana, cocaine and heroin 2 -, this industry is the principal exporter of illegal drugs to the US.