Police want new law to seek out underground operations suspected of laundering
POLICE want new laws to close a serious loophole which is allowing suspected drug money to be secretly laundered in underground banks.
The Joint Financial Investigation Group believes money is flooding out of the territory through these self-styled financial institutions.
Because they are unregulated, no client or transaction records or accounts are kept.
In most cases, funds can be sent almost anywhere in the region, at little charge and more quickly than mainstream institutions.
Usually, another firm overseas can give the money to the intended recipient; either by reciting a code or password or, in sophisticated practices, directly into bank accounts.
The group's acting Superintendent Chris Hanselmann said yesterday police wanted to focus attention on what they call unlicensed remittance centres, which have traditionally been used by domestic helpers to get wages repatriated.
Mr Hanselmann said growing intelligence reports suggested the illicit use by drug traffickers of the centres.
