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In
2010, Mexico instituted strict limits on foreign exchange cash transactions to
$1,500 per person per month, which caused several cash dollar exchanges to
withdraw from the business and had the effect of penalizing tourists.
$207 million from largest cash seizure
in Mexico. (Photo credit: Wikipedia)
Of
course, US dollars are a huge portion of the actual paper cash that this
effort is aimed at, but the Mexican peso
is the 12th most traded currency in the world and by far the most traded
currency in Latin America.
Reuters
reported that, “Sales of drugs from marijuana to
cocaine and methamphetamine in the United States are worth about $60 billion
annually, according to the United Nations. About half of that amount is
estimated to find its way back to cartels in Mexico.”
The
Woodrow Wilson International Center For Scholars’ Mexico Institute
published a comprehensive study in May 2012 entitled “It’s All about the Money.” The report
recommended tight integration and coordination with the United States in the
areas of legal framework, financial institution regulation, intelligence on
cross-border currency flows, and non-conviction based asset forfeiture.
Two
years in the making, the new law also requires notaries, real estate brokers,
and other dealers to report the forms of payment for transactions above the respective
limits. Financial institutions will also be required to report monthly credit
card balances in excess of 50,000 pesos ($3,875).
Although
it’s part of a global trend among governments, Mexico will still have a
long way to go to catch up. Spain
recently banned cash transactions above 2,500 euros and Italy banned cash transactions above 1,000 euros.
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http://www.forbes.com/sites/jonmatonis/2012/10/17/large-cash-transactions-banned-in-mexico/
