LA Fashion District Has Become The Center Of Drug Money Laundering

Federal authorities have been raiding businesses in the fashion district of Los Angeles in a drug money laundering probe. According to Fox News, hundreds of federal and local law enforcement agents raided downtown Los Angeles in a sweep targeting over 70 locations.

LA Weekly reports, downtown L.A.'s clothing retailers and wholesalers are so deep in dirty money that the federal government announced it will be requiring "additional reporting and record-keeping obligations" for nearly the entire L.A. Fashion District.

Following last month's federal seizure of $90 million in alleged Mexican cartel money tied to Fashion District businesses, the U.S. Financial Crimes Enforcement Network (FinCEN) issued a Geographic Targeting Order (GTO) that puts much of the area under strict financial surveillance.

This means that targeted businesses must report cash transactions of $3,000 or more for 180 days starting next Thursday. "Targeted businesses include garment and textile stores, transportation companies, travel agencies, perfume stores, electronics and cellphone stores, shoe stores, lingerie stores, florists, beauty supply stores and stores with 'import' or 'export' in their names," said FinCEN.

This includes pretty much everybody. The Fashion District area is also allegedly full of black market peso exchange schemes. These schemes involve converting US drug money into goods that are shipped to countries such as Mexico, where the goods are sold. Money, now in the form of local currency, then goes to the drug trafficking organizations.

The acting U.S. Attorney in L.A., Stephanie Yonekura, said: "My office sought the unprecedented order from FinCEN with the goal of shutting down the flow of dirty money to foreign drug cartels- a huge problem that has contaminated the Fashion District."

The raids, and strict financial surveillance by the U.S. Treasury Department mark one of the largest actions ever undertaken by federal authorities and is the latest attempt to eliminate the multibillion-dollar drug trade.