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Money Laundering and Bulk Cash Smuggling: Challenges for the Mérida Initiative
Working Paper Series on U.S.-Mexico Security Cooperation

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by Douglas Farah
Published on November 30th, 2010

It is widely accepted that cutting off the flow of money from the sale of cocaine in the United States to the Mexican drug trafficking organizations is one of the most efficient ways to decrease the power of the cartels. Without the cash influx there would be less money for corruption and the purchase of weapons, and cash seizures directly take away what the drug traffickers want most -- profits from their illicit activities. On both sides of the border the smuggling of bulk cash and money laundering tied to the billions of dollars in profits is not just viewed as a problem for Mexico, but as a significant security threat to the United States.

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