A vehicle monitoring and traffic enforcement system in which a wireless communication device is associated with motor vehicles. The device will transmit vehicle identification data which is relayed to a database which maintains current information concerning insurance law compliance, motor vehicle registration and licensing compliance, traffic citations and other information. If a violation or compliance failure is noted, this is transmitted to a law enforcement agency and a nearby law enforcement vehicle. A law enforcement officer may be required to pursue the vehicle depending on the violation and traffic conditions. The system uses GPS and GIS technology to provide law enforcement with a real time display which will not only show the vehicle being tracked but also a map of the area showing roads, traffic conditions and even the location of other law enforcement or emergency vehicles so that officials may make a safe and fast response to situations. In another embodiment, the device may be a device such as an RFID tag which can be scanned and interrogated by a law enforcement official and which may be used for traffic and also parking control.