Designating Mexican Financial Firms, Latin American Cartels Has Spurred Change, Senators Told
The Trump administration’s recent designation of three Mexican financial institutions as primary money laundering concerns and several Latin American cartels as foreign terrorists are having a positive effect, a former U.S. official told the Senate Foreign Relations Committee July 23.
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The money laundering designations, which the Treasury Department made under the new FEND Off Fentanyl Act in June (see 2506260014), have prompted Mexican regulators to address lapses in internal controls that were identified by the designations, said Christopher Urben, retired assistant special agent in charge at the Drug Enforcement Administration. They have also led other entities operating in Mexico to enhance their anti-money laundering programs to avoid being designated.
The terrorist designations, which the State Department made in February (see 2502190011), have forced businesses to enhance their internal and anti-money laundering controls and stop giving cartels “protection payments” that may now be considered material support for terrorism, said Urben, managing director at investigations provider Nardello & Co.