Neither Rain, Nor Snow?Will Keep Them From Filing A CRF!

An unofficial report came from an attorney based in Washington that the United States Post Office will be getting some new money orders, some new restrictions and some training.

Now that it is more difficult to deposit large sums of drug money into financial institutions to move it out of the country through wires, the "smurfs" who have to take large amounts of small currency and change it into negotiable instruments are buying postal money orders, as well as others, in large quantities. Even though there is a $700 limit on a postal money order, there are stories of people buying 20 or more at a time!

The money laundering evident in the purchasing of multiple, consecutive money orders is discovered when the money orders come in for payment. Consecutively numbered money orders in like amounts trigger a report that is reviewed daily by the postal inspectors. They will then initiate an investigation. Postal employees will soon receive training on the requirements to report money laundering that is taking place using this method.

In addition, the U.S. Postal Service reportedly plans on issuing two different money orders-domestic and international. The proposal is that they will be different colors. There will only be about a 50 cent to a $1 charge for domestic money orders, but there may be a $4 or $5 charge for international ones. The largest international money order will be $500, if the proposal is accepted.

The purpose, of course, is to make it really expensive and inconvenient to launder money through the post office's money orders. In which case, as we well know, the "smurfs" will come up with another system. We just hope it doesn't involve us!

Copyright © 1995 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 5, No. 7, 3/95