Mexico passes law to combat cartel money laundering – World Updates | The Star Online
Mexico is getting tough on the nation’s powerful drug cartels by instituting new Anti-Money Laundering laws that should have broad international repercussions:
The new federal law puts restrictions on cash purchases of real estate, jewellery, armoured cars and other assets that criminals use to launder illicit funds.
Companies will be required to report large cash purchases under the law. Car sales of more than 200,000 pesos (about $16,000) and real estate purchases of more than 500,000 pesos (about $39,000) must be reported.
The bill carries a minimum penalty of five years in prison.
“There is an outcry from society to weaken the financial structures of organized crime and that is what this law is about,” said Senator Roberto Gil, a member of Calderon’s conservative National Action Party.
Nearly 60,000 people have been killed since Calderon launched a military-led assault against drug cartels after taking office in late 2006.