us mexico remittance flow

Crime-Related Links Suspected in $4 Billion US-Mexico Remittance Flow

Illegalities Exposed: Remittance Boom Draws Attention to Suspicious Transactions from Low-Mexican Population States
 

According to a recent study by a Mexican-based data think tank, over 8% of the record $58 billion that Mexicans mostly residing in the US returned home the previous year seemed to be connected to illicit practices, such as money laundering.

Another report released on Monday by Signos Vitales made up by researchers who study Mexican public data and analysed that remittances to Mexico have increased significantly in the last several years as a result of increased immigration to its northern neighbour, but at least $4.4 billion of these transactions may be associated with criminal activity.

money sent from the us to mexico

Money Transferred from the US to Mexico

As per this research, increasing remittances from regions with a low percentage of Mexican immigrants and those receiving more monthly funds deposits than there are families are some of the red flags of money laundering. The investigators also draw attention to remittances that originate in unidentified countries.

Enrique Cardenas, an economist and the director of Signos Vitales also stated that there must be a reason for the startling rise during the past few years. It's remarkable that it increased from about $21 billion to almost $60 billion. There are areas where things appear odd and don't occur elsewhere in the nation.

In 2022, Minnesota had the third-highest percentage of transactions to Mexico among US states, with more than 200,000 of its inhabitants being of Mexican ancestry. According to a study, the number of remittances exceeded the projected number of families in more than 200 communities in Mexico, which suggests that an unlikely 100% of them are getting funds from overseas.

In contrast to just over $22 billion a decade earlier, remittances to Mexico from people who are employed abroad tripled to a record $58.5 billion the previous year. During the COVID outbreak, the money transfers supported Latin America's second-largest economy by enabling Mexican families to resume paying their bills despite a reduction in activity and minimal official assistance.

 

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