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Is it theoretically possible to launder money through a single web-based business using prepaid cards?

Published September 6th, 2018 by Salesadmin

Money laundering rule on prepaid cards stalled after industry pushback

Mica Rosenberg, Brett Wolf

NEW YORK/ST. LOUIS, August 10 (Reuters) - In 2011, amid a crackdown on international money laundering, the U.S. Treasury Department tried to close a loophole that authorities said allows drug cartels to move bulk cash across borders on a gift and other prepaid cards.

The department’s Financial Crimes Enforcement Network (FinCEN) proposed that money stored on these cards count toward a U.S. requirement to report cross-border movement of cash of $10,000 or more.

But FinCEN later withdrew its proposed rule after pushback from the prepaid card industry, according to law enforcement sources. The move has not been previously reported.

In response to questions from Reuters, FinCEN spokesman Stephen Hudak said the rule was being reworked and would be resubmitted, possibly by 2017.

“It’s not dead,” Hudak said.


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