Mexico imposes new money laundering law

Mexican Legislators have finally passed a money laundering law in an attempt to curb the cash deluge of drug cartels.

President Felipe Calderon of Mexico forwarded this proposed law to Congress two years ago, but partisan infighting had held it up until now. It has finally been approved by the Senate. The Chamber of Deputies passed it early this year.

The new legislation severely restricts what can be bought in money in hand terms, including homes, businesses, vehicles and luxury items, which the cartels are fond of snapping up with cold hard cash.

It is never to little, or too late to fight organized crime, but Mexico's cartels now turnover well in excess of 40 billion dollars annually in their illicit narcotics industry, which is rapidly expanding. Mexico's most powerful drug trafficker Joaquin "Shorty" Guzman, who leads the Sinaloa cartel, is a billionaire who is annually mentioned on Forbes Richest and Most Powerful lists.

Listen to the full report by regional correspondent James Blears: