Advantages And Disadvantages Of Trade Based Money Launding

Drug cartels have arisen as a major crisis for the future in the Americas. Individuals indulge themselves on drugs for many reasons such as tradition, attempting to escape poverty, and generating revenue for rebellious activities. Drug trafficking has proven to be ludacris, with the increasing involvement of corrupt government officials in their distribution. The UN has stated the approximate estimation of profits of drug trade is roughly around $150 billion alone in the Americas, which accounts slightly less than 5% GDP. Currently the most common way of drug transport is land through Central American countries like Mexico, and it eventually crosses over the border to the United States.

The United States agency of drugs have discovered that for all of the illegal drugs consumed in the nation has been transported by the Mexican cartels. “U.S. federal officials say that the mexican cartels operate in dozens of U.S. cities and analysts say they are moving to consolidate their control of the entire supply chain of illegals drugs”(Schwartz, 1). The government of the United States have been conducting the investigation to now if the cartels are north. Many big cities today have a piece of the cartel organization working there and also producing drugs to distribute within the city. According to the investigation done by the DEA and U.N officials “Mexican cartels have established command - and - control centers to orchestrate cocaine shipments by sea and air along the still wild caribbean coast with the help of local authorities”(Booth, 2). All though that the cartel are moving to the United States they are still leaving command center in mexico to conduct shipments by ground or any other shipments overseas. The cartel is able to transport such quantities of drugs with help of the local authorities and other corrupt government officials.

B the permanent movement of funds from one currency to another in the hopes of profiting from long. term investment in a particular country.

Criminal organizations operating from South America smuggle cocaine and heroin into the U.S. via a number of routes.

From the third world of many South American countries, to the third street projects in the inner-city, to the third floor of a downtown luxury loft, cocaine is prevalent and being used. The business of the coca leaf is a billion dollar a year industry, if not more. Our foreign counterparts are profiting in full off of the drug. Mexico, Peru, and Colombia are some of the countries in Central and South America that are profiting and manufacturing cocaine.

Money Laundering is the act of placing illegally acquired money in a legitimate business cash flow. This is done in order to be able to use that currency without law enforcement and the IRS questioning cash flow pertaining to a certain individual or corporation in question. This also considered a form of

Northeast drug markets receive wholesale quantities of heroin supplied by Columbian TCO’s. Columbian traffickers will also utilize both the Mexican and Dominican organizations for further transportation and distribution of heroin to target cities along the east coast. Columbia and Mexico together account for more than 90% of the heroin supplied to the United States.

By the mid-1980’s Colombian drug cartels controlled most of the cocaine smuggled into the United States. More than 15 tons of cocaine smuggled in each day, netting the cartel as much as $420 million a week. The cartels involved saw it as an opportunity to gain status and defeat the American government. What each person in a cartel was most afraid of was being extradited to the United States.

The United States has one of the most profitable drug markets in the world. “As such, it attracts the most ruthless, sophisticated, and aggressive drug traffickers” The United States has such a demand for illegal drugs such as cocaine, heroin, marijuana, MDMA, and methamphetamine, that traffickers will do about anything to sneak in the drugs into the country. The majority of the drugs are brought into the country from the border between Mexico and the U.S.A. These drugs are supplied mainly from Mexico, and Colombia. According to the U.S Drug Enforcement Agency, the price of a kilogram of cocaine ranges from $13,000 to $25,000. That is about 2.2 pounds of cocaine. With that kind of profit, we can for sure know that as long as there is demand

Unfortunately for the illicit drug market, disrupt in the supply chain does not just occur during production, but can also be intercepted during transportation. According to the International Narcotics Control Strategy Report (2015), “the U.S. Coast Guard, seized one submersible and two semi-submersible vessel for transporting drugs [from Colombia]” (138). The threat of confiscation without compensation, due to drugs being a part of an illicit economy, compels traffickers to utilize more covert and inventive methods in the movement of substances. An example of a preventative measure commonly applied by organized crime groups is a monetary bribe provided to customs officers for purposefully overlooking drug smuggling across country borders, “higher levels of income inequality are also known to provoke drug trafficking and corruption… members of marginalized groups may view corruption and involvement in criminal organizations as a viable way to improve their lives” (The Drug Problem and Organized Crime, Illicit Financial Flows, Corruption, and Terrorism 33). Comparatively to members of the illicit narcotics market, individuals a part of the criminal justice system may succumb to bribery for financial gain as a result of perceived income inequality. Consequently of globalization, an enhancement of

What is International Drug Trafficking? International Drug Trafficking is a global illicit trade involving the cultivation, manufacture, distribution and sale of substances which are subject to drug prohibition laws (CITE). Most of the drugs that are being transported are grown in developing nations and then are transported to Industrialized nations such as the United States and Europe where drug use is all over. The United States and Europe have laws that are against drug usage, so for the drug users to get what they need they buy it on the black market. In Latin America many leaders believe that if the United States would allow illegal drugs to become legal, then they would have less drug addicts and overdoses. Since the United States would not allow illegal drugs into their country drug trafficking organizations, such as the cartels have stepped in to give the American people what they want, while making a ton of money. According to (CITE) Bruce M. Bragley the cartels have taken over drug trafficking all over the world for the past twenty-five years. Bragley also claims without uncertainty that the United States is the largest consumer of illicit drugs on Earth. The United States alone consumes more than one billion dollars on illicit drugs. (CITE) Although Cocaine is the most popular drug, it has significantly dropped in usage in the United States, but has gain usage in Europe. Cocaine is now largely consumed by Brazil and has replaced Argentina completely, this was reported by the United Nations. The United Nations Office on Drug and Crime reports that the Americas combined consumed sixty-three percent of the four hundred and forty metric tons of cocaine available, while the European population consumed twenty-nine percent of the world supply. (CITE) Out of all the drugs that are trafficked cocaine has been to more countries and has made the most success by spreading to more than two hundred countries. Drug Trafficking is not as

The drug dealers have captured a great deal of power in Colombia, and have adopted the position of the government in many instances. The drug trade has ruined the image of Colombia, and has caused the world to forget about the other goods produced in Colombia, like coffee, flowers, oil and gas for instance. As the website put out by the Colombian Government Trade Bureau entitled “Colombia Trade News” states,

Drug trafficking is a major issue in Colombia, causing many other issues across the country. Many people involved in the drug trade including civilians are being killed, kidnapped, and injured over this problem. Over the years, the government has started cracking down on the growers, producers, and sellers but so far, they have only caught minor criminals. The government is making agreements with neighboring countries and finding alternative uses for the crops to slow down the production of drugs. Despite all of the efforts being made to stop drug trafficking, violence, and production the cartels are still thriving throughout Colombia.

Drug trafficking has been an ongoing epidemic in the United States, as well us other countries for an unimaginable amount of time. Illegal drugs varying from heroin and cocaine are primarily the main drugs that get smuggled in the United States from South America. Even marijuana and methamphetamine have been popular in the drug smuggling “industry”. These gangs go to a variety of different extents to get the job done. Drug trafficking increases the violence levels These drugs have been smuggled through the Southwest Border since the 1970s and are attempting to expand the distribution of those drugs into eastern U.S. markets. The countries of drug production have been seen as the worst affected by prohibition. In many countries worldwide, the illegal drug trafficking can be directly linked to high violent crimes. This is especially true in third world countries, but has still been seen as an issue for many developed countries all over the world. Drug trafficking increases the risk of violence and crime due rise of addiction along with an increase of death. It also effects the along with correctional system effects.to its high costs, Nearly all of the heroin produced in Mexico is destined for distribution in the United States. Organized crime groups operating from Mexico produce, smuggle, and distribute various illegal drugs after trafficking them across the US border. Trafficking groups that operate from Mexico tend to avoid penalties by their stealthy methods of smuggling

Drug trafficking has become an increasingly growing problem in the world today. Illegal drug trade is a worldwide black market consisting of production, distribution, packaging, and sale of illegal substances. Although today’s "War on Drugs" is a modern phenomenon, drug problems have been a common problem throughout history. The market for illegal drugs is massive, when we consider the estimated global drug trade value is worth $321 billion (Vulliamy). The most drug trafficking happens on the border between Mexico and the United States. Former Mexican President Felipe Calderon said, “Our neighbor is the largest consumer of drugs in the world. And everybody wants to sell him drugs through our door and our window”