How do drug cartels typically structure their operations and finances?
How do drug cartels typically structure their operations and finances?
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Drug cartels typically structure their operations by dividing tasks into hierarchies of command. The largest decisions are handled by the “Board of Directors” or an equivalent decision-making body while day-to-day oversight is performed by “Senior Executives”. Drug trafficking and transport, money laundering, financing, and other areas are usually managed by specific departments that report to those senior executives. Additionally, cartels leverage sophisticated financial structures and trust networks to secure funding for operations, invest in assets used in illicit activities, as well as manage assets derived from illicit activities like the laundering of drug trafficking proceeds. They also frequently utilize front companies to facilitate legal transactions which further complicate investigations and financial trail analyses.
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How do drug cartels typically structure their operations and finances?
user
Drug cartels typically structure their operations and finances using complex networks of front businesses, shell companies, informal channels, and a variety of legal and illegal techniques. They maintain networks of contacts both inside and outside of Mexico who are enlisted to collect drug payments, coordinate shipments, launder money and facilitate other logistical needs. Additionally, they have been known to use sophisticated methods such as transnational investment structures based in countries such as Panama or Switzerland in order to launder vast sums without drawing attention.
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