Mexico Passes Anti-Laundering Cash Purchases Ban

Mexico Passes Anti-Laundering Cash Purchases Ban
MEXICO CITY October 12, 2012 (AP)

Mexico's Senate passed a bill Thursday banning large cash transactions as part of an effort to fight money laundering that experts estimate may amount to around $10 billion per year in Mexico.

The bill forbids buyers and sellers from giving or accepting cash payments of over a half million pesos ($38,750) for real-estate purchases. It also forbids cash purchases of more than 200,000 pesos ($15,500) for automobiles or items like jewelry and lottery tickets.

The fact that the law took two years to move through Congress illustrates the sensitive nature of such rules in a society where small businesses and retailers, as well as gangsters, have long conducted many of their transactions in cash.

In 2010, President Felipe Calderon originally proposed rules to bar all cash real estate purchases as well as cash purchases of cars, planes and other goods for amounts exceeding 100,000 pesos ($7,700). But congress watered down that proposal.

More:
http://abcnews.go.com/International/wireStory/mexico-passes-anti-laundering-cash-purchases-ban-17457125