A Chula Vista man will be sentenced April 11 after pleading guilty to failing to maintain an adequate anti-money laundering program at seven of his currency exchange businesses in Mexico.
Baltazar Fitch could get up to five years in federal prison and/or a $250,000 fine from U.S. District Court Magistrate Judge Cynthia Bashant. He remains free on $10,000 bond.
Fitch admitted that he knew cash that came from clients in Mexico may be through unlawful activities. His businesses provided currency exchange and transmission services and partnered with businesses in California.
The federal Bank Secrecy Act requires owners of such businesses to develop, implement and maintain an effective anti-money laundering program to verify customer identification and make sure funds do not come from unlawful activities.
The U.S. Attorney’s office said he was aware of the law’s requirement to report “any suspicious transaction” that could violate a U.S. law to the Department of Treasury. His businesses received large quantities of cash from other Mexican-based currency exchange houses. He admitted to claiming that cash deposits were from sale of goods rather than from fund transfers.
