M. Alex Johnson – Journalist at Large

An analog journalist in a digital world

Posts Tagged ‘money-laundering

Reporting: U.S. aims to track ‘untraceable’ prepaid cash cards

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Steve Streit, chief executive of prepaid access card firm Green Dot, told CNBC last year how the cards work.

Update: The Network Branded Prepaid Card Association responds here.

Cross-posted from msnbc.com’s Open Channel blog, where it originally appeared. To read it in context, click here.

Right: Steve Streit, chief executive of prepaid access card firm Green Dot, told CNBC last year how the cards work.

By M. Alex Johnson
msnbc.com reporter

As the federal government tells it, the money men behind the Sept. 11, 2001, hijackers would never have been identified had they not been lousy bankers:

“The 9/11 hijackers opened U.S. bank accounts, had face-to-face dealings with bank employees, signed signature cards and received wire transfers, all of which left financial footprints. Law enforcement was able to follow the trail, identify the hijackers and trace them back to their terror cells and confederates abroad.”

That’s from a Treasury Department assessment of financial security threats in 2005. It went on to warn that the terrorists could have quietly moved large sums of money into or out of the U.S.:

“Had the 9/11 terrorists used prepaid … cards to cover their expenses, none of these financial footprints would have been available.”

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Written by Alex

September 1, 2011 at 10:03 am