Financial Tracing Methods Against Drug Gangs

Financial Tracing Methods Against Drug Gangs
Police use multilayered strategies to track drug-related financial activities:
Transaction Monitoring
Suspicious Activity Reports (SARs): Banks flag transactions (e.g., frequent deposits under $10,000 to avoid reporting thresholds) and file SARs15.
Currency Transaction Reports (CTRs): Cash deposits over $10,000 trigger automatic reporting, helping identify bulk cash movements5.
Asset Tracking
Luxury Purchases: Police trace high-value assets (e.g., cars, real estate) bought with unexplained wealth. Example: $26,000 cash car purchase flagged via Form 83005.
Nominee Ownership: Investigators uncover assets registered under third parties to evade forfeiture laws5.
Digital Forensics
Cryptocurrency Analysis: Tools track crypto transactions through “tumbling” mixers and wallet transfers14.
Hawala Networks: Cross-border informal systems are mapped using financial trails and communication intercepts3.
Collaborative Frameworks
FIUs and CARIN: Financial Intelligence Units share data via networks like Camden Assets Recovery Inter-Agency Network to freeze transnational assets6.
Bank Penalties: Institutions like TD Bank face fines for lax monitoring, incentivizing stricter compliance (e.g., $3B fine for cartel-linked accounts)3.
Enhanced Legal Tools
Beneficial Ownership Registries: Authorities access centralized databases to identify account holders behind shell companies6.