The Black Market Peso Exchange is the most extensive money laundering methodologies in the Western Hemisphere. BMPE is a money laundering method in which money earned through its trade is embezzled using international trade and blocked currency accounts. It is also the process of cashing in and laundering the profits generated by the illegal drug trade. With the underground financial system that emerged in Colombia in the 1960s, Colombian people in business could access the US dollar, despite their tight regulation.
Black Market Peso Exchange is the system of exporting drugs to North America and Western Europe by Colombian drug dealers. Colombian drug dealers gained access to significant currencies such as dollars, francs, and marks, with drug sales being deposited in the cash in which the drugs were sold.
Although the party that started the system was the drug dealer, he was out of business after a while. The system continues with money brokers laundering the funds they hold. The broker places the funds in the country system with assistance from foreign countries. Thus, the cycle is complete.
Convicted drug trafficker Jung, who distributes cocaine in the US, states that the cash earned with cocaine has been converted into pesos. It is also known that a famous smuggler from Colombia died after embezzling a large amount of US dollars. Locals express this amount as 'so much money that the rivers will be clogged with US dollars coming through rain or floods.'
On the one hand, McDonald's was an agent in south Florida in the early 1980s who stated that criminals smuggled cash by transferring cash to banks, but no reports were presented.
The government passed the first money laundering laws and suspicious transaction reporting terms in the US in 1970. But US banks did not take these laws into account. Under the law, banks located in the US were required to report transactions involving more than $ 10,000 in cash. Depending on the money obtained by the drug trade, the US government pressured banks to comply with regulations.
In Colombia, there are money controls and tax laws to prevent money laundering and terrorist financing. Because of these controls and regulations, Colombian business people have a black market to trade money. The black market is also one of the most functional ways to save money.
Today, there are strict laws created by governments around the world to prevent money laundering in banks. As these laws became more authoritarian, Colombian smugglers began trying other methods of money laundering. Many have already started to infiltrate the black peso exchange, avoiding using the banking system.
Known as the Black Market Peso Exchange, this method is one of the most successful money laundering methods ever designed. Governments and financial institutions must take critical measures against this method. Otherwise, the large amounts embezzled by criminals will drag the country's economy into great disasters.
Request a demo and learn how Sanction Scanner protects your firm from the Financial Crimes.Request Demo