Stored-value Card - Money Laundering

Money Laundering

There is growing concern that drug traffickers and other criminals worldwide are using stored-value cards to move the proceeds from drug transactions and other criminal activities across international borders. In the United States, it is legal for anyone to enter or leave the country with money that is stored on these cards, and (unlike cash in high amounts) does not have to be reported to customs or another government entity. Some members of the U.S. Congress are considering creating laws that would require travelers crossing entering or leaving the country to report these cards.

The Financial Crimes Enforcement Network of the U.S. Department of the Treasury has published a notice of proposed rulemaking on stored-value cards in the June 28, 2010 edition of the Federal Register. The proposed rules would require sellers of prepaid cards to register with the government and keep records on transactions and customers.