NEW YORK.- Legal remittance networks that connect migrant workers with their families in Mexico have become an effective tool for cartels to repatriate illicit proceeds from drug sales in the United States, according to security sources on both sides of the border cited in a recent investigation by Reuters.
According to the report, this criminal strategy intensified in the midst of the Covid-19 pandemic, when traditional cash trafficking routes were hampered by the closure of the US-Mexico border.
The investigation revealed how Mexican criminal organizations, in particular the Sinaloa Cartel, have used the vast legal network of money transfer companies to repatriate their proceeds from drug sales from the United States to Mexico.
These legitimate remittance networks, which help migrant workers send money home to their families, are essential to millions of Mexicans and have seen steady growth in recent years.
The states that send the most remittances to Mexico are California, Texas, Minnesota, Illinois and New York, which together account for more than half of the dollar remittances to migrant families.
Historical growth of remittances since 2018
Remittances to Mexico, the vast majority of which come from the United States, reached a record $58.5 billion last year, according to data from the Bank of Mexico.
This represents an increase of $25 billion, or 74%, compared to 2018, when President Andrés Manuel López Obrador took office.
Mexico’s economy has struggled to recover from the coronavirus pandemic, fueling migration to the United States in recent years along with remittances workers send home.
However, the growth of legitimate remittances has also made it easier for cartels to conceal their illicit profits in small transfers sent to ordinary people in Mexico with no obvious ties to organized crime, according to US and US security officials. Mexico.
According to the Mexican think tank Signos Vitales, at least $4.4 billion, or 7.5%, of remittances sent to Mexico last year could come from illegal activities.
How does sending illegal money work?
The criminal operation works by taking advantage of the legal network of money transfer companies, which operate through convenience stores, supermarkets and other retail stores, where migrant workers can send money to their families in Mexico.
These stores, known as agents, offer transfer services through companies such as Western Union and follow internal procedures to verify the identity of senders and receivers.
Although these companies have internal systems to detect illegal activity, much of the controls depend on face-to-face interactions with customers in stores.
This fragmented network is fundamental to the functioning of the criminal scheme. Although money transfer companies have systems in place to detect illegal activity, control relies heavily on the integrity and diligence of agents, some of whom are allegedly in cahoots with drug traffickers.
The cartels have recruited civilians to act as remittance intermediaries, turning them into a kind of “mules” to transport illicit money through legal networks.
Importance of remittances for Mexico
Legitimate remittances are a crucial part of the Mexican economy and a source of relief for many families.
Remittances are an important source of income for Mexico. In 2022, remittances amounted to 58,497 million dollars, which represented 3.5% of Mexican GDP.
This makes them the most important source of external income for Mexico, surpassing exports of manufactures and tourism.
Compared to other income for the Mexican economy, remittances are the most important source of income for low-income families.
In 2022, remittances represented 10% of the income of Mexican households in the lowest income quintile.
However, the exploitation of this network by drug cartels poses significant challenges for authorities.
It may interest you:
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Since May 1, a system began to operate in the United States to send remittances to Mexico at low cost that only requires that both sender and recipient have a Broxel-compatible card, which is endorsed by a financial institution of the Mexican government.
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“The idea is that money can be sent without having to go to a remittance company,” explains Diana Vázquez, community consul at the Mexican Consulate in Houston.
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According to the consul, the only thing you need to start benefiting from this process that promises to be more agile and without intermediaries is to obtain the Financial debit card for Well-being, from the Government of Mexico.
Crédito: GettyImages.
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It is necessary that both the person in the United States and the person who receives the money in Mexico have this debit card.
Credit: Samuel Toledo,
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According to the authorities, this card can be requested at any Mexican consulate in the United States or through the website: broxel.com/us/bienestar-es
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The consul clarifies that the activation is done digitally, through the page. With the card you can send up to 2,500 dollars from the United States to Mexico, on a daily basis, and only $3.99 will be charged
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“The exchange rate will be determined according to the date on which the money is sent,” the consul clarified.
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To activate or apply for your card, all you need is: A valid address in the United States. Email address. Official Mexican or US ID. Cellphone number. Valid identifications: Mexico: IFE/INE, passport, driver’s license or consular registration. USA: Passport or driver’s license.
Crédito: GettyImages.
2023-08-27 16:03:20
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