**Unregulated Currency Exchange Centers Operate with Leased Permits in Tijuana**
In Tijuana, several currency exchange centers, also known as casas de cambio, are operating illegally by leasing permits from the National Banking and Securities Commission, a practice that breaches anti-money laundering regulations. Olivaldo Paz, Vice President of the National Chamber of Commerce, Services, and Tourism (Canaco-Servytur), disclosed that some individuals acquire the permits from the commission only to rent them out instead of operating authentically.
These unauthorized centers open shop with all necessary security specifications and engage in buying and selling dollars, said Paz. This practice particularly affects legitimate exchange operators who abide by the rules. Despite having avenues to report these illegal practices, many are hesitant due to the sensitive nature of the issue. Paz advocates for the authorities to take due action.
Properly regulated establishments comply with the 10,000-dollar daily cap and are required to collect customer information for each transaction, adhering to anti-money laundering rules. Conversely, the irregular operations often transact larger sums without any scrutiny.
Paz also mentioned during a press briefing on October 25, 2024, that pressure on currency exchange centers to maintain a specific exchange rate, prevalent four years ago during a series of assaults on establishments, has abated. The last notable incident involving a fire at a business on the Boulevard in Playas and another in the Zona RÃo was linked to extortion demands. However, Paz suggested that such extortion is now an isolated rather than a widespread issue.
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**Increased Security Concerns in Tijuana Following Currency Exchange Irregularities**
Recent developments in Tijuana have illuminated the ongoing issue of unregulated currency exchanges, with many operating under rented permits from the National Banking and Securities Commission. As these centers bypass stringent financial scrutiny and anti-money laundering controls, there’s a growing concern about the potential links to organized crime, particularly in the context of money laundering.
Further exacerbating the situation is the backdrop of increased security tensions in the city. While some progress has been made, isolated incidents of extortion still pose threats, not only to currency exchanges but also to other businesses operating in high-risk areas. Law enforcement is urged to take decisive action to curb these activities.
Moreover, local business leaders are calling for enhanced regulatory oversight and enforcement to ensure that all financial transactions meet legal standards to protect both operators and consumers. The business community remains keen on collaborating with authorities to tackle these issues and create a safer economic environment conducive to genuine trade and commerce.
In light of these challenges, it is imperative for the authorities to crack down on illegal operations and ensure that existing regulatory frameworks are effectively enforced to prevent potential abuses and safeguard economic stability in the region.