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News Link • Counter-Economics

Prepaid cards attract money launderers

• Forbes

BOGOTA, Colombia -- Forget bulk cash. Heavy and hard to hide, it's simply not the most convenient cross-border conveyance for a 21st-century money launderer.

A safer and increasingly attractive alternative for today's criminal is electronic cash loaded on what are called stored-value or prepaid cards. Getting them doesn't require a bank account, and many types can be used anonymously.

 

2 Comments in Response to

Comment by Vincent-brian: [mross]
Entered on:

"It was bank and wire-transfer records that enabled law enforcement to identify the Sept. 11, 2001 hijackers and their overseas cells. "Had the 9/11 terrorists used prepaid (stored-value) cards to cover their expenses, none of these financial footprints would have been available," a U.S. Treasury Department report observed."

Sheesh... you had to know that was coming...

The money moved digitally, as most legitimate capital travels these days, but bypassed bank accounts, making its digital footprint harder to detect. Virtual Money allegedly violated U.S. banking law by not reporting transfers of above $10,000 or other activity suggesting illegal money movement. 

Comment by Hoyt A. Stearns,jr.
Entered on:

Philosophical thoughts: "Money Laundering" can't be a crime per se, it's just moving something you own from one place to another. If you stole it, that's already the crime of theft. Similarly: "Smuggling" can't be a crime per se, it's just moving something you own from one place to another. If you stole it, that's already the crime of theft. The word "Extremist" used in a derogatory way seems highly misguided as Ayn Rand has said -- an extremist is one who insists that 2+2 = 4 when others around want them to allow for 2+2 = 5 and 2+2 = 3, i.e. extremism is a virtue.  


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