Mexico Limits US Dollar Transactions

In a step aimed at thwarting money laundering by drug cartels, the government of Mexico announced strict limits Tuesday on the deposit and exchange of U.S. dollars in banks, noting that the nation's economy is being flooded with illicit drug profits.

The money helps traffickers buy military-grade weapons used to kill tens of thousands of people and recruit small armies all over the country who battle rival gangs and government forces.

Failure to intercept the money has long been singled out as a major flaw in President Felipe Calderon's military-led offensive against the cartels.

In response, the government announced that it will limit individual bank account holders to deposits of $4,000 monthly in U.S. currency, while others without accounts will be allowed to exchange up to $1,500. Companies working along the border or in designated tourist areas can conduct bank transactions of up to $7,000 monthly...

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Source: http://www.chicagotribune.com/news/nationworld/la-fg-mexico-dollar-20100616,0,2491591.story