Puerto Rico: A Hotbed for Financial Crimes and Cryptocurrency Transactions
Money Laundering in Puerto Rico: A Major Concern
Puerto Rico, known for its tax incentives and foreign investments, has become a significant hub for financial crimes, including money laundering. The island’s complex financial system and unique economic situation make it an attractive destination for criminals seeking to conceal the proceeds of illegal activities.
Money Laundering - Major Contributors
- Drug Trafficking: Puerto Rico’s location and economy make it a significant contributor to money laundering, with drug trafficking being a major source.
- Physical Movement of Cash and Money Mules: Criminals use various methods to launder their ill-gotten gains, from the physical movement of cash to recruiting money mules.
Non-Federally Chartered Puerto Rican Financial Entities: A Hidden Risk
According to the latest National Money Laundering Risk Assessment, non-federally chartered Puerto Rican financial entities (ICEs and IBEs) pose a significant risk due to their offshore banking model, leaving them vulnerable to misuse by criminals seeking to launder money.
Cryptocurrencies: The New Frontier for Financial Crimes
Cryptocurrencies offer anonymity and decentralization, making them an attractive tool for money launderers, cybercriminals, and other bad actors. This has led to an increase in cryptocurrency-related financial crimes, with the use of money mules and trade-based money laundering techniques.
What are Money Mules?
Money mules are individuals who transfer illegally acquired funds on behalf of or at the direction of another. Criminals often recruit mules to move money electronically through bank accounts or assist in the physical movement of funds. Vulnerable individuals include college students, small business owners, elderly individuals, and newcomers to the country.
Trade-Based Money Laundering: Hiding Illicit Funds in Plain Sight
Trade-based money laundering (TBML) is a sophisticated method used by criminals to disguise the proceeds of their crimes through trade transactions. Techniques like over and under invoicing, multiple invoicing, and falsely described goods and services are used to legitimize illegal funds.
Trends: Cryptocurrencies - Risks and Opportunities
Cryptocurrencies, such as Bitcoin, offer fast, anonymous, international transactions with irrevocability. However, they come with risks, including the potential for misuse in money laundering and other financial crimes.
Recent Developments in Puerto Rico
- Growth of Bitcoin ATMs: The number of Bitcoin ATMs in Puerto Rico has grown, expanding access to cryptocurrencies and their potential use in money laundering activities.
- Acceptance of Cryptocurrencies as Payment: Businesses in Puerto Rico are beginning to accept cryptocurrencies as a form of payment. It is crucial to understand the risks and implement robust AML/CFT measures to prevent abuse.
For further information about money laundering in Puerto Rico or to report suspicious activity, contact:
- IA Sofia Estrada, FBI San Juan Money Laundering Squad Intelligence Analyst: [email] estrada@fbi.gov[email] or [phone] 787-966-5651.
- MS Nadia Lopez, FBI San Juan Money Laundering Squad Tactical Specialist: [email] nlopez4@fbi.gov[email] or [phone] 787-406-3741.