Have You Ever Wondered How criminal organizations launder their money?

Have you ever wondered what Mexican Drug Cartel, mafia and other illegal entities do with the millions of dollars and in some cases billions of dollars.This professional article by Michael Webster who consults with authorities on “how to follow the money“ provides a comprehensive overview of the various techniques used by Mexican drug cartels and many other criminal organizations. How do they get away with it in most cases. 

To launder money, emphasizing the complexity and international scope of their operations. By examining specific regional practices, the intricate details of laundering methods become clear, offering insights for both law enforcement and financial institutions.

The fight against money laundering requires a coordinated global effort. Mexican drug cartels' laundering activities in China, Italy, France, Hong Kong, Panama and beyond highlight the need for stringent financial regulations by Congress and international cooperation by other countries and jurisdictions.

By understanding these methods, authorities can better target and dismantle the networks that enable these underworld organizations to sustain their operations.

Laundering money is the process of concealing the origins of money obtained through illicit means, making it appear legitimate. Mexican drug cartels other criminal entities, employ sophisticated methods to launder their proceeds, often using global networks. Here is a detailed exploration of various money laundering techniques and the intricate processes involved.

Money laundering is a critical concern for law enforcement agencies worldwide. Mexican drug cartels are notorious for their extensive and complex laundering operations, leveraging international financial systems and exploiting vulnerabilities in various countries. This article delves into the multiple methods used by these cartels, with a focus on operations in China, Italy, France, Hong Kong, Panama, Luxenberg, and other money, laundering, Havens, and regions regions.

Methods of Money Laundering

Forming limited liability companies (LLC’s) here in the states and then forming international LLC’s, which own the state side LLC’s. Then wire transferring money from the state side LLC to the international LLC Havens in certain jurisdictions around the world.

A good place to launder money is through casinos around the world. There, you can turn the casino chips into cash and claim you want it. However, don’t do it in one casino do it in several that way it’s harder to follow the money and making a good case for prosecutors.

Smurfing and Structuring

Cartels often use a technique called "smurfing" to break down large sums of money into smaller, less suspicious amounts. These smaller amounts are then deposited into various bank accounts or used to purchase monetary instruments such as cashier's checks or money orders. This process, known as structuring, helps avoid triggering financial institutions' reporting requirements.

Example: In the United States, the Bank Secrecy Act requires banks to report transactions exceeding $10,000. By structuring deposits to remain below this threshold, cartels can evade detection. However, if you make several deposits just under 10,000 same 9,500 that would raise suspicion and triggered the paperwork. cash.

Trade-Based Money Laundering (TBML)

TBML involves using international trade to launder illicit funds. This can include over-invoicing, under-invoicing, or misrepresenting the quality or quantity of goods and services.

Example: A cartel might export low-value goods but invoice them at a much higher price. The overseas buyer, often a cartel-affiliated entity, pays the inflated invoice, transferring illicit funds under the guise of legitimate trade.

Shell Companies and Front Businesses

Creating shell companies and front businesses allows cartels to integrate dirty money into the financial system. These companies can engage in legitimate business activities, providing a cover for illicit funds.

Example: A cartel might establish a series of seemingly legitimate businesses that mainly deal in cash such as bars restaurants, donut shops, cleaners, nail shops, massage parlors, laundromats, and other retail cash businesses. Cash from drug sales is funneled through these businesses, mixed with legitimate earnings, and deposited into the business’s bank accounts.

Real Estate Investments

Investing in real estate is a common laundering method. Cartels purchase properties with illicit funds and then sell or rent them, creating a legitimate income stream.

Example: In Mexico, cartels have been known to buy luxury properties in tourist areas, using them as both investments and safe houses.

Money Mules and Cash Couriers

Cartels often use money mules to physically transport cash across borders. These individuals are paid to carry large amounts of money, either by hiding it on their person or in their luggage.

Example: A money mule might travel from Mexico to the United States with thousands of dollars hidden in clothing, electronics, or other personal items.

Digital Currencies and Cryptocurrency

Cryptocurrencies provide anonymity and ease of transfer, making them attractive for laundering money. Cartels can convert cash into cryptocurrencies, move them across borders, and then convert them back into cash or other assets.

Example: Using a cryptocurrency exchange, a cartel can transfer Bitcoin from a wallet in Mexico to a wallet in Hong Kong, and then use it to purchase goods or convert it back to cash.

Regional Focus: Intricate Details

China

Chinese underground banks and the use of the Chinese financial system are prominent in laundering cartel money. These banks facilitate large-scale money transfers without traditional banking scrutiny.

Technique: Cartels may deposit illicit funds into these underground banks, which then transfer the equivalent amount in RMB to a recipient in China. This money can be used for investments or held in Chinese bank accounts, often with minimal regulatory oversight.

Italy

In Italy, cartels often collaborate with the Mafia, using their established money laundering networks. These include using local businesses and real estate.

Technique: The 'Ndrangheta, known for its extensive involvement in drug trafficking, provides laundering services by investing in luxury real estate and high-end restaurants in tourist areas, blending dirty money with legitimate revenue.

France

France’s financial system is used for sophisticated laundering schemes, often involving luxury goods and art.

Technique: Cartels might purchase high-value art pieces and luxury items, which can be easily transported and sold in different markets. These items serve as both investments and means to move money internationally.

Hong Kong

Hong Kong's financial hub status makes it a key location for laundering activities, particularly through its banking system and real estate market.

Technique: Cartels set up shell companies in Hong Kong, using them to open bank accounts and move funds through international wire transfers. The city’s real estate market is also a prime target for investment and laundering operations.

This was just a few of the hundreds of ways there are to laundering money. Plus, noon, clever ways are being utilized and dreamed up frequently.

Arrests of El Chapo's Son and Other Mexican Cartel Leaders

 Arrests of El Chapo's Son and Other Mexican Cartel Leaders: An In-depth Analysis

The Mexican government's relentless pursuit of dismantling drug cartels has led to the high-profile arrests of several notorious leaders, including the sons of Joaquín "El Chapo" Guzmán. The arrest of Ovidio Guzmán López, one of El Chapo's sons, and other key figures within the cartels marks a significant development in the ongoing battle against organized crime in Mexico.

The Arrest of Ovidio Guzmán López

Ovidio Guzmán López, a prominent figure within the Sinaloa cartel, was apprehended in January 2023 during a dramatic operation in Culiacán, Sinaloa. This arrest was part of a broader strategy by the Mexican government to target high-ranking members of drug cartels.

Background and Operation Details

Ovidio, also known as "El Ratón," has been involved in his father's drug empire, playing a crucial role in managing the cartel's operations. The operation to capture him involved a large-scale deployment of Mexican security forces, including the military and federal police. The confrontation led to intense gunfights between the cartel's armed enforcers and the security forces, causing significant chaos in Culiacán.

The successful capture of Ovidio was a stark contrast to an earlier attempt in October 2019, when security forces detained him but were forced to release him due to violent cartel retaliation. This time, the government ensured that adequate measures were in place to prevent a similar outcome, showcasing a more decisive stance against cartel violence.

Other Notable Arrests

In addition to Ovidio Guzmán López, other significant arrests have been made within various Mexican cartels.

1. José Antonio Yépez Ortiz ("El Marro"): Leader of the Santa Rosa de Lima cartel, El Marro was captured in August 2020. His arrest was a crucial blow to the cartel, known for its involvement in fuel theft, drug trafficking, and violent confrontations with rival groups and law enforcement.
2. Nemesio Oseguera Cervantes ("El Mencho"): While El Mencho, the leader of the Jalisco New Generation Cartel (CJNG), remains at large, Mexican authorities have intensified efforts to capture him. Several high-ranking members of the CJNG have been apprehended, destabilizing the cartel's operations.
3. Rubén Oseguera González ("El Menchito"): The son of El Mencho, El Menchito, was extradited to the United States in February 2020. He is facing charges related to drug trafficking and organized crime, significantly impacting the CJNG's leadership structure.

The Case of Aapo’s Alleged Kidnapping

In an unexpected twist, Aapo Guzmán, another of El Chapo's sons, has reportedly been kidnapped. His attorney claims that Aapo was forcibly taken by unknown assailants, raising concerns about intra-cartel conflicts or actions by rival groups. The details surrounding his alleged kidnapping remain murky, with authorities investigating the incident to determine the perpetrators and their motives.

Implications and Future Prospects

The arrests of these cartel leaders signify a notable achievement for Mexican law enforcement in their fight against organized crime. However, the arrests also bring about potential ramifications:

1. Power Struggles: The capture of key figures like Ovidio Guzmán López and El Marro could lead to internal power struggles within the cartels. These vacuums in leadership may result in violent confrontations as factions vie for control.
2. Retaliatory Violence: Cartels have historically responded to the arrests of their leaders with escalated violence, targeting both law enforcement and civilians. Authorities must brace for potential backlash and ensure the safety of affected communities.
3. International Collaboration: The extradition of figures like El Menchito underscores the importance of international cooperation in tackling drug trafficking. Continued collaboration between Mexico and the United States is crucial in prosecuting cartel members and dismantling their networks.

Conclusion

The recent arrests of Ovidio Guzmán López and other prominent cartel leaders mark a significant milestone in Mexico's war against drug cartels. While these actions demonstrate the government's commitment to eradicating organized crime, the aftermath may present new challenges. Addressing these complexities requires sustained efforts, strategic planning, and international cooperation to ensure long-term success in curbing the influence of these criminal organizations.

Widening the Wealth Gap

 Widening the Wealth Gap

Michael Webster syndicated investigative reporter

The economic shift will exacerbate existing inequalities. The gap between the rich and the poor in America has been steadily widening, and this trend is set to accelerate. Several factors contribute to this growing divide:

• Asset Concentration: The wealthy often hold significant investments in assets that will be most affected by market volatility, such as stocks and real estate. As these markets destabilize, the affluent could see their net worth decline sharply.
• Access to Resources: While the rich have more resources at their disposal, their reliance on complex financial instruments and high-value assets makes them vulnerable to systemic risks. In contrast, the poor, with limited assets, may suffer more immediately but on a relatively smaller scale.
• Economic Mobility: The middle class, often seen as the backbone of the economy, will face barriers to upward mobility. With shrinking retirement funds and decreasing home values, achieving financial stability and growth will become increasingly difficult.

Risk to the Wealthy

Ironically, the wealthy, typically insulated from economic downturns, face the greatest risk in this scenario. Their substantial holdings in volatile markets and complex financial products make them particularly susceptible. The potential decline in asset values could lead to:

• Loss of Wealth: Significant portions of their wealth could evaporate, leading to a reduced quality of life and financial insecurity.
• Lifestyle Adjustments: Many affluent individuals may need to make drastic changes to their lifestyles, scaling back on luxuries and reevaluating their financial strategies.
• Increased Vulnerability: The rich may find themselves unprepared for the speed and scale of the economic shift, lacking the agility to adapt quickly to new financial realities.

Preparing for the Future

In light of these impending changes, both individuals and policymakers must take proactive steps to mitigate risks. Diversifying investments, reassessing financial strategies, and advocating for policies that promote economic stability and equity are crucial.

1. Diversification: Individuals should consider diversifying their investment portfolios to include assets less susceptible to market volatility, such as commodities, bonds, or alternative investments.
2. Financial Planning: Engaging with financial advisors to develop robust, adaptable financial plans can help cushion the blow of economic shocks.
3. Policy Advocacy: Supporting policies that address economic disparities and promote financial education can help create a more resilient economy.

Conclusion

The impending economic shift represents a critical juncture for America. While it poses significant challenges, it also offers an opportunity to rethink and restructure our financial systems and societal values. By understanding the risks and taking proactive measures, we can navigate this turbulent period and emerge with a more equitable and sustainable economic future.

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Chinese and Mexican Underground Banks:

 Chinese and Mexican Underground Banks: An Unholy Alliance Fueling Drug Trafficking and Money Laundering

Bye syndicated investigative reporter Michael Webster

In an alarming development, Chinese underground banks have been found to be partnering with Mexican drug cartels in a sophisticated money-laundering operation. This collaboration is providing the cartels with critical financial services and access to precursor chemicals needed for drug manufacturing, significantly bolstering their operations. The nexus between these two entities not only facilitates the smooth functioning of drug trafficking but also exacerbates the drug crisis in the United States, particularly with the spread of fentanyl.

A Symbiotic Relationship

The Mexican drug cartels have long relied on international partners to sustain their drug manufacturing and distribution networks. Recently, their collaboration with Chinese underground banks has intensified, driven by mutual benefits. The cartels seek better prices on precursor chemicals from China, essential for producing drugs like methamphetamine and fentanyl. In return, Chinese underground banks launder billions of dollars for the cartels at remarkably low rates, around 2% interest. This financial arrangement allows the cartels to operate with greater liquidity and financial security.

Bank Mirroring: A Sophisticated Laundering Technique

Central to this collaboration is a technique known as "bank mirroring." In this method, when a drug cartel deposits money into a Chinese underground bank, an equivalent amount is picked up from another branch of the same illicit financial network. This system ensures that large sums of money can be moved across borders without arousing suspicion from financial authorities. It also allows the cartels to maintain the secrecy of their transactions, complicating efforts by law enforcement agencies to track and intercept their funds.

The Chemical Pipeline

One of the most significant aspects of this partnership is the provision of precursor chemicals by Chinese entities to the Mexican cartels. These chemicals are critical for synthesizing various drugs, including methamphetamine and fentanyl, the latter being a potent synthetic opioid responsible for a surge in overdose deaths in the United States. By securing these chemicals at lower prices, the cartels can increase their production capabilities, flooding the market with these dangerous substances.

Fentanyl: A Growing Threat

The impact of this alliance is acutely felt in the United States, where fentanyl has become a major public health crisis. Fentanyl is incredibly potent, with just a few milligrams capable of causing a fatal overdose. Its proliferation has led to a dramatic increase in overdose deaths, straining emergency services and public health systems. The drug is often mixed with other substances, making it even more dangerous for unsuspecting users.

International Implications

The collaboration between Chinese underground banks and Mexican drug cartels has far-reaching implications. It highlights the global nature of the drug trade and the sophisticated financial networks that support it. It also underscores the challenges faced by international law enforcement agencies in disrupting these operations. The use of bank mirroring and other advanced laundering techniques makes it difficult to trace the flow of illicit funds, complicating efforts to dismantle these networks.

Conclusion

The partnership between Chinese underground banks and Mexican drug cartels represents a significant threat to global security and public health. By providing financial services and precursor chemicals, Chinese entities are enabling the cartels to expand their operations and increase the production of dangerous drugs like fentanyl. Addressing this issue requires a coordinated international response, including enhanced financial regulations, improved cross-border cooperation, and targeted efforts to disrupt the supply chains of precursor chemicals. Only through such comprehensive measures can we hope to mitigate the devastating impact of this unholy alliance.

Call to Action

Governments and international organizations must prioritize the fight against this transnational crime network. Increased funding for law enforcement, stricter financial regulations, and enhanced international cooperation are essential steps. Public awareness campaigns about the dangers of synthetic opioids and support for addiction treatment services are also critical components of a comprehensive strategy to combat the drug epidemic.

The stakes are high, and the cost of inaction is measured in lives lost and communities devastated. The time to act is now.

The Global Reset: A Chilling Tale of Wealth and Economic Manipulation

 The Global Reset: A Chilling Tale of Wealth and Economic Manipulation

Michael Webster syndicated investigative reporter

In a world where the balance of power and wealth constantly shifts, few stories are as alarming and controversial as the one unraveling behind closed doors. At the heart of this narrative lies a shadowy consortium of powerful individuals and organizations, often referred to as "Globalists." These entities are accused of orchestrating an ambitious and unsettling plan to reset not just individual wealth, but the entire U.S. economic system. The implications are far-reaching, threatening to alter the very fabric of our society.

The Hidden Agenda

For years, whispers of a grand scheme have circulated among financial experts and conspiracy theorists alike. This plan, shrouded in secrecy, allegedly aims to dismantle the current economic structures in favor of a new world order. The primary objectives? To consolidate wealth and power into the hands of a select few while rendering the masses increasingly dependent on a centralized system.

The Mechanics of Control

1. Central Bank Digital Currencies (CBDCs): One of the cornerstones of this purported reset is the introduction of Central Bank Digital Currencies. CBDCs promise efficiency and security, but critics argue they also grant unprecedented control over personal finances. Every transaction could be monitored, taxed, or even restricted, effectively ending financial privacy.

2. Debt Forgiveness Programs: While seemingly benevolent, proposed global debt forgiveness initiatives are seen by some as a Trojan horse. By wiping out individual and national debts, the Globalists could impose stringent conditions and controls, effectively turning debtor nations and their citizens into economic vassals.

3. Climate Change Policies: Environmental regulations and carbon taxes, while essential for combating climate change, are also viewed as tools for economic manipulation. By controlling energy resources and imposing hefty penalties on non-compliance, Globalists could further consolidate their power, dictating terms to governments and corporations.

The Role of Key Players

Several influential figures and organizations are frequently mentioned in connection with these plans:

1. International Monetary Fund (IMF) and World Bank: These institutions are at the forefront of global financial policy. Their involvement in restructuring national economies often comes with conditions that critics argue erode sovereignty and increase dependency.

2. Major Tech Corporations: Tech giants possess vast amounts of data and wield significant influence over information dissemination. Their role in promoting digital currencies and surveillance technologies aligns with the broader goals of economic control.

3. Prominent Billionaires: Individuals such as George Soros and Klaus Schwab are often cited as key proponents of the reset. Through initiatives like the World Economic Forum's "Great Reset," they advocate for a transformation of the global economy that critics warn could undermine democratic institutions and individual freedoms.

The Implications for Ordinary Citizens

The alleged global reset poses several risks to personal wealth and freedom:

1. Erosion of Financial Independence: With centralized control over digital currencies and economic policies, individuals may find it increasingly difficult to operate outside the prescribed financial system.

2. Increased Surveillance: The integration of financial data with other personal information could lead to a surveillance state, where dissent and non-compliance are easily tracked and punished.

3. Loss of Sovereignty: Nations ceding control over their economic policies to international bodies could see a significant reduction in their ability to act independently, impacting everything from social programs to defense.

A Call to Awareness

Whether viewed as a legitimate threat or a far-fetched conspiracy, the narrative of a global reset engineered by powerful elites is compelling and deeply unsettling. It highlights the need for transparency, accountability, and vigilance in the face of sweeping economic changes. As these plans continue to develop, it is crucial for citizens to stay informed and engaged, advocating for policies that protect individual rights and national sovereignty.

Conclusion

The story of the global reset is a testament to the complex interplay between power, wealth, and control in the modern world. It underscores the importance of questioning official narratives and seeking out the truth, no matter how inconvenient or terrifying it may be. Only by remaining vigilant can we ensure that the future of our economic system serves the many, not the few.

This article delves into the allegations and concerns surrounding a global reset, exploring the potential impacts and the key players involved. It aims to provoke thought and encourage further investigation into this critical issue.