Gift cards used to launder money

Police are saying that cash gift cards can be used by criminals and terrorists to launder money, which will be used to finance their activities.

The problem cards are not the gift cards that you purchase at your favourite department store but a newer cash card as they explain here:

Prepaid cards have grown rapidly into a $63.4 billion business. There are two kinds. So-called closed-system cards can be used only at the retailers that issue them. The newer open-system cards, in contrast, can be used at almost any retailer. Better yet, you can use many as ATM cards and withdraw the amount you put on the card anywhere in the world. Sunoco, Rite Aid and Safeway, among others, all sell these open-system cards, and will replenish them as well.

One of the continuing arguments the “gun ban” crowd uses is that guns are (or could be) used illegally, therefore there should be more and more regulations and legislation right up to complete bans. So if these gift cards are being used in criminal activities will someone be pushing the federal government to limit their use, or force people using them to register their purchase or outright make them illegal?

Actually, it wouldn’t surprise me to see the police working behind the scenes to get some kind of formal paper trail established which would enable them to track transactions.


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