Walter K. Baumgartner
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has recently issued an advisory. It’s designed for financial institutions. The advisory is about illegal financial mechanisms associated with the trafficking of fentanyl and not only. Let’s dive into the topic and see how you can protect your business if you’re interested in chargeback insurance.
Money Laundering Risks: Chargeback Insurance
The above mentioned advisory by FinCEN issued on 21 August 2019 is an alert that companies in finance can’t leave in ignorance. The advisory highlights a variety of financial mechanisms that the traffickers of fentanyl and not only use to sell their products more easily and “succeed” in hidden payment processing schemes.
The CDC (Centers for Disease Control and Prevention) defines fentanyl as a synthetic (created by men) opioid that’s 50 times more powerful as compared to heroin and 100 times more powerful as compared to morphine. In 2017, over 28.000 people died in the U.S. because of it and other synthetic opioids.
TCOs (transnational criminal organizations), such as suppliers from Mexico, China, and elsewhere, as well as those in the U.S. buying the product online, get involved in the trafficking of fentanyl and other products related to it. In addition, they engage in the subsequent proceed laundering from such illicit sales.
It’s too important for companies operating both domestically and overseas to take individual steps to make themselves better protected against being unintentionally involvement in facilitating fentanyl production.
Also, through collaboration, they can keep their platforms away from those involved in the illicit trade and production of the product. This way, they can also better protect themselves from trafficking activities and avoid negative reputational impact.
Here, reliable and secure payment processing companies play a special role. Working with a reputable credit card processor that can provide you with the latest fraud prevention and chargeback mitigation services will keep you away from financial risks.
So, if chargeback insurance is something you’re interested in, consider turning to a true payment processing expert that can protect your business excellently.
Fentanyl Trafficking in the U.S.
Fentanyl trafficking in the U.S. is generally realized in 2 ways. 1st, U.S. individuals buy fentanyl directly from China for personal use or for distributing it domestically. 2nd, TCOs, and smaller criminal networks obtain it through cross border trafficking from Mexico.
Fentanyl and other synthetic opioids are being illegally sold, distributed, and misused in the U.S., thus creating major hazards associated with addiction and death.
Based on the statistics, synthetic opioids (other than methadone) related deaths in the U.S. grew more than 800% from 2013 to 2017. Over 130 deaths are registered in the country because of an opioid-related overdose on a daily basis.
The above mentioned advisory points to the risks that U.S. and international businesses and supply chains may be faced with. It also shows that the Administration is committed to pursuing those directly and indirectly involved in fentanyl trafficking.
To sum up, FinCEN has recently introduced an advisory, alerting companies in finances to illegal financial schemes linked to the trafficking of fentanyl.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high risk merchant account processor in the country that can best help merchants interested in chargeback insurance. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.
