PHOENIX -- Drug smugglers have found a new tool that lets them carry large amounts of money over the border without violating any laws, according to Arizona Attorney General Terry Goddard.

Normally, it's illegal for anyone to send more than $10,000 out of the country at any one time; however, smugglers can put money on a stored value card, which looks like a credit card, carry it across the border and use the card to retrieve the cash.

Though the cards have legitimate uses, critics argue they're being abused by drug cartels.

"These are gift cards on steroids," Goddard said. "These are cards capable of having up to $1 million (on them)."

There are no federal laws that prohibit carrying these cards across the border.

"You can put the money (on the card) in one country, and then just carry this card across to another," Goddard said. "It's something that I've been pleading with the federal authorities that they've got to close that loophole."

Usually offshore banks issue these cards, but retail gift cards and phone cards are often used for the same purpose.

Goddard said he plans to speak with other lawmakers and law enforcement officials at an anti-money-laundering conference about ways to make it more difficult for smugglers to take their profits across the border.