Which method to launder money through deposit-taking institutions is closely associated with international trade?

The correct answer is B. Using Black Market Peso Exchange. The Black Market Peso Exchange (BMPE) is a trade-based money laundering technique commonly used by narcotics traffickers in Colombia and Mexico. The central feature uses a money trader to ensure that US drug sales revenue doesn't cross any borders. Instead, those dollars are…

Risks and Methods of Money Laundering and Terrorist Financing

Question

Options

AForming a shell company
BUsing Black Market Peso Exchange
CStructuring cash deposits withdrawals
DInvesting in legitimate business with illicit funds

How the community answered

(29 responses)

A
3% (1)
B
83% (24)
C
10% (3)
D
3% (1)

Explanation

The Black Market Peso Exchange (BMPE) is a trade-based money laundering technique commonly used by narcotics traffickers in Colombia and Mexico. The central feature uses a money trader to ensure that US drug sales revenue doesn't cross any borders. Instead, those dollars are used to purchase any number of legitimate commodities from unsuspecting businesses on behalf of legitimate South American businesspersons, whose legitimate imports are used to obtain pesos for the drug cartels. This method is closely associated with international trade because it involves the exchange of goods and currencies across different countries, and it exploits the discrepancies between the official and unofficial exchange rates.

Topics

#Black Market Peso Exchange#trade-based money laundering#international trade#deposit-taking institutions

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