Why does law enforcement want this data anyways?
In a nutshell, law enforcement agencies value transaction records because they can be used to paint an investigative picture and collect evidence of money laundering and fraud. Though the data on its own isn’t necessarily enough to make an arrest, supporters of the program say they establish a pattern and show the flow of funds potentially associated with criminal activity.
These money transfer services, which are typically less regulated than larger banking institutions, have drawn scrutiny form lawmakers over concern their lack of reporting makes them more susceptible to criminal activity. On the flip side, that lack of regulations means law enforcement entities are able to tap into money transfer data more easily than they could traditional banking records.
Rich Lebel, the director of the nonprofit organization responsible for housing the records, told The Wall Street Journal the data had contributed to hundreds of law enforcement leads and busts related to drug cartels and other money laundering operations.
