Illegal wire transfers difficult to stop, law enforcement officials say

McALLEN — Mexican drug cartels and other criminal organizations are increasingly using wire transfers to fund their illegal enterprises, U.S. Sen. John Cornyn said Tuesday after meeting with federal law enforcement officials in McAllen.

The transfers pay for human smuggling, drug trafficking and other illegal activities, said Cornyn, adding cutting off ways to transfer the proceeds can cut off incentives to do the crime.

"They don’t care whether they’re smuggling people or drugs or weapons," the Republican senator said. "They’re criminals who are all about the money."

Cornyn met with U.S. Immigration and Customs Enforcement officials Tuesday as he begins developing legislation to curb wire transfers used for illegal purposes.

The extent of the transfers is unknown, although Cornyn said for human smuggling alone, it could be "hundreds of millions of dollars."

Jerry Robinette, head of ICE’s office of investigations in San Antonio, said money service businesses are the industry of choice for smugglers.

The businesses allow customers to cash checks, purchase money orders and wire money elsewhere on a fee-for-service basis.

While they’re regulated by state agencies, many of the transfers pass without scrutiny, making them an ideal conduit for criminal organizations wanting to operate under the radar.

Robinette said it’s difficult for law enforcement officers to scrutinize their transfers even if some look like they’re from illegal activities.

"Lots of these are legitimate transfers," he said. "We need good, accurate information."

Cornyn said money services businesses are used mainly to pay "coyotes," who illegally smuggle people across the border.

To wire money, people can provide limited information, much of it false, Cornyn said. In addition, the information isn’t always subject to audits or subpoenas from law enforcement officials.

Cornyn, who was briefed by ICE officials on ways to draft legislation to address the illegal transfers, said improving the information customers must give could be key.

"It sounds like a little thing, but it’s something that could be helpful for law enforcement personnel," Cornyn said.