In an effort to combat exorbitant money laundering in Mexico, President Felipe Calderon has signed into law a ban on large cash transactions, the AP reports. The ban is intended to curb laundering practices which some experts estimate amount to $10 billion per year in Mexico.
The bill forbids buyers and sellers from making or accepting cash payments of more than a half million pesos ($38,750) for real-estate purchases. It also forbids cash payments of more than 200,000 pesos ($15,500) for automobiles or items like jewelry and lottery tickets.
AP reports that small businesses, retailers and certainly gangsters have long conducted many of their transactions in cash, so the legislation has been particularly sensitive. As such, the law took two years to move through Congress. It will go into effect in about 90 days.