Mexican President announces anti-money laundering measures

Mexican President Felipe Calderon has introduced fresh measures to crack down on money laundering by organised crime syndicates, including a sharp limit on cash transactions.

“We are going to close the path to the money coming from kidnapping, extortion, drug trafficking or any other crime,” Mr Calderon said at a public event in which he signed the proposals and sent them to Congress for approval.

The crackdown includes limiting cash transactions to some $7,600 at a time in the purchase of vehicles and jewellery, among other things. The big-ticket items can be bought with a check or a credit card.

The government will also tighten control over real estate companies, companies that issue credit cards, companies in the security business, jewellers, attorneys and accountants, among others.

Mexico will also increase collaboration with foreign police specialising in financial crimes, Mr Calderon said.

Mexican officials estimate that the country obtains some $10 billion in drug proceeds each year.

In mid-June the government limited bank cash transactions to $4,000 a month per person, and $7,000 a month per company. Mr Calderon has made cracking down on illegal drug cartels a priority of his administration.

More than 28,000 people have been killed in drug-related violence since December 2006, when Mr Calderon launched a nationwide crackdown against narco-traffickers.