Top Money Laundering Countries in Latin America

in Business Risk

A study conducted by the Mexican House of Representatives reported on the top countries in Latin American where money laundering cases occurs.

The countries and the amount of money laundered is as follows:

Brazil: $2.9 Trillion (5 percent of GDP).

Mexico: $1.1 Trillion (3.6 percent of GDP).

Chile: $268.27 Billion (4 percent of GDP).

Peru: $200 Billion (4 percent of GDP).

Ecuador: $70 Billion (4 percent of GDP).

According to an anti-money laundering expert with Grant Thornton, money launderers follow a three steps process of placement, stratification and integration.

The first step of how money launders move their funds is by placing numerous small amounts into different financial institution. Then, the funds are deposited into various accounts around the world in order to move the money further away from its original source. The final step of the laundering process is to use those funds to purchase legal assets, such as real estate.

(More cases of money laundering.)

Source:  Sergio Ramos, “Money laundering by organized crime affects regional economy,” Infosurhoy, February 11, 2014.

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