Friday March 9, 2018
People who send money from the United States to their families—especially to those in poor countries—see these "remittances" as a lifeline. However, remittances and other global payments can be used to hide money laundering and other financial crimes.
Money transfer companies have used banks to transfer money worldwide. But some banks want to limit their exposure to the risk of financial crimes, and refuse or restrict transfer companies' accounts.
Now, some transfer companies are bypassing the bank by taking cash over borders. We recommended that Treasury assess the risks of these transfers, which are harder to monitor for criminal activity.