Illicit Finance

Bulk cash shipments, money services businesses (MSBs), and front businesses are the primary methods used by traffickers to move and launder illicit drug proceeds in the HIDTA region to drug source locations; however, the particular money laundering typology used often depends upon the trafficking group. Mexican and Canada-based DTOs and criminal groups use private and commercial vehicles to transport bulk cash shipments to source locations, often in the same conveyances used to ship drugs into the region. Mexican DTOs also send wire transfers and smurf⁵ money orders through MSBs to move currency to source areas along the Southwest Border and into Mexico. African American DTOs and criminal groups often purchase cash-intensive front businesses such as car washes, clothing stores, and hair and nail salons through which they commingle legitimate and illicit proceeds. Some local African American criminal groups launder money through recording companies. Additionally, law enforcement officials report that members of Black Mafia Family purchase winning lottery tickets as a means to launder illicit proceeds. Middle Eastern criminal groups operate convenience stores and, to a lesser extent, operate wire remittance service businesses to launder illicit proceeds. Some Middle Eastern criminal groups, primarily Chaldean, launder money through third-party checks or become loan sharks for gamblers in order to launder illicit funds. Various lower-level traffickers launder money through casinos. Many retail-level traffickers purchase expensive items, including automobiles and jewelry, to dispose of illicit funds.

End Note

5. Smurfing is a technique whereby large amounts of cash are divided into smaller amounts to avoid Bank Secrecy Act filing requirements and then deposited or wired.

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