| This paper analyzes the role of check cashing businesses in providing both specific financial services to the public, and serving as a conduit for the flow of illegal cash derived from criminal activity abroad. Generally concentrated in low-income neighborhoods, such businesses provide residents without access to traditional banking institutions a means to conduct their financial affairs. At the same time, however, it is suspected that these largely unregulated financial institutions are heavily involved in international money laundering schemes. We examine the problems inherent in regulating these institutions, the types and extent of fraud uncovered in them, the responses of the industry to increased government concern and scrutiny, and the potential impact of new regulations on deterring criminal activity. |
Updated 05/20/2006