Money Laundering with Credit Cards

Answered by:

Question:

Can anyone provide any examples or explanations of money laundering using credit. We understand the use when demand loans are involved, but are thinking of credit cards or other credit vehicles.

Answer:

I can get two credit cards on my account. One is in my "cousin's" name, which I send to my cousin in Columbia, so he can use it there. As he uses it there to make cash advances, and/or to buy drugs (What makes you think the drug lords don't take credit cards?), I make the payments here, using washed funds by check from my account I opened with you.Easy, isn't it?

First published on BankersOnline.com 8/12/02