WASH CYCLE ATMs Become Handy Tool For Laundering Dirty Cash

http://online.wsj.com/article/SB119033266947734601.html?mod=hps_us_pageone

With Small Deposits,
Couriers Outwit Banks;
Bag of Money in Queens

By MARK SCHOOFS
September 21, 2007

At 8:50 a.m. on March 15, 2006, Luis Saavedra and Carlos Roca began going from bank to bank in Queens, New York, depositing cash into accounts held by a network of other people, according to law-enforcement officials. Their deposits never exceeded $2,000. Most ranged from $500 to $1,500.

Around lunchtime, they crossed into Manhattan and worked their way up Third Avenue, then visited two banks on Madison Avenue. By 2:52 p.m., they had placed more than $111,000 into 112 accounts, say the officials, who reconstructed their movements from seized deposit slips.

Confederates in Colombia used ATM cards to withdraw the money in pesos, moving quickly from machine to machine in a withdrawal whirlwind, the officials say. "The organization at its height was moving about $2 million a month," estimates Bridget Brennan, Special Narcotics Prosecutor for New York City.

Messrs. Saavedra and Roca were arrested in June and charged under state money-laundering laws. Officials say they were moving money for a Colombian drug-trafficking organization that sells cocaine and the club-drug Ecstasy. Prosecutors say the two men engaged in a laundering practice called "microstructuring," a scheme notable for its simplicity. To evade suspicion by banks, they always made small deposits. In Colombia, getting at that money was as easy as pushing buttons on an ATM.