4/28/12Drugmoneysavedbanksinglobalcrisis,claimsUNadvisor
I
Worldnews
I
TheObserver
theguardian
I1heObserver
Drugmoneysavedbanksinglobalcrisis,claims
UN
advisor
Drugsandcrimechiefsays$352bnincriminalproceedswaseffectivelylaunderedbyfinancialinstitutions
RajeevSyalTheObserver,Sunday13December2009Articlehistory
Drugsmoneyworthbillionsofdollarskeptthefinancialsystemafloatattheheightoftheglobalcrisis,theUnitedNations'drugsandcrimetsarhastoldthe
Observer.
AntonioMariaCosta,headoftheUNOfficeonDrugsandCrime,saidhehasseenevidencethattheproceedsoforganisedcrimewere"theonlyliquidinvestmentcapital"availabletosomebanksonthebrinkofcollapselastyear.Hesaidthatamajorityofthe$352bn(£216bn)ofdrugsprofitswasabsorbedintotheeconomicsystemasaresult.Thiswillraisequestionsaboutcrime'sinfluenceontheeconomicsystemattimesofcrisis.
It
willalsopromptfurtherexaminationofthebankingsectorasworldleaders,includingBarackObamaandGordonBrown,callfornewInternationalMonetaryFundregulations.SpeakingfromhisofficeinVienna,Costasaidevidencethatillegalmoneywasbeingabsorbedintothefinancialsystemwasfirstdrawntohisattentionbyintelligenceagenciesandprosecutorsaround18monthsago."Inmanyinstances,themoneyfromdrugswastheonlyliquidinvestmentcapital.Inthesecondhalfof2008,liquiditywasthebankingsystem'smainproblemandhenceliquidcapitalbecameanimportantfactor,"hesaid.Someoftheevidenceputbeforehisofficeindicatedthatgangmoneywasusedtosavesomebanksfromcollapsewhenlendingseizedup,hesaid."Inter-bankloanswerefundedbymoneythatoriginatedfromthedrugstradeandotherillegalactivities...Thereweresignsthatsomebankswererescuedthatway."Costadeclinedtoidentifycountriesorbanksthatmayhavereceivedanydrugsmoney,sayingthatwouldbeinappropriatebecausehisofficeissupposedtoaddresstheproblem,notapportionblame.Buthesaidthemoneyisnowapartoftheofficialsystemandhadbeeneffectivelylaundered."Thatwasthemoment[lastyear]whenthesystemwasbasicallyparalysedbecauseoftheunwillingnessofbankstolendmoneytooneanother.Theprogressiveliquidisationtothesystemandtheprogressiveimprovementbysomebanksoftheirsharevalues[hasmeantthat]theproblem[ofillegalmoney]hasbecomemuchlessseriousthanitwas,"hesaid.
4/28/12Drugmoneysavedbanksinglobalcrisis,claimsUNadvisor
I
Worldnews
I
TheObserver
TheIMFestimatedthatlargeUSandEuropeanbankslostmorethan$ltnontoxicassetsandfrombadloansfromJanuary2007toSeptember2009andmorethan200mortgagelenderswentbankrupt.Manymajorinstitutionseitherfailed,wereacquiredunderduress,orweresubjecttogovernmenttakeover.Gangsarenowbelievedtomakemostoftheirprofitsfromthedrugstradeandareestimatedtobeworth£352bn,theUNsays.Theyhavetraditionallykeptproceedsincashormoveditoffshoretohideitfromtheauthorities.ItisunderstoodthatevidencethatdrugmoneyhasflowedintobankscamefromofficialsinBritain,Switzerland,ItalyandtheUS.BritishbankerswouldwanttoseeanyevidencethatCostahastobackhisclaims.ABritishBankers'Associationspokesmansaid:"Wehavenotbeenpartytoanyregulatorydialoguethatwouldsupportatheoryofthiskind.Therewasclearlyalackofliquidityinthesystemandtoalargedegreethiswasfilledbytheinterventionofcentralbanks."
Ads
by
Google
ExPatLivingInIsrael?£lOok+InUKPensions?DownloadAFreeGuideToQROPS
&
ExpertAdviceYour.QROPSchoices.com/GuardianGreenisGoldinBrazilForestinvestmentsisthenewGold.Returnsof8-12%p.a.InvestNow.www.greenwood-management.com300,000
'11~11111j?W;"J;"J'J11111j?W;"J
11:l~
111':1'~j?'~N11111:!l;"J"wtj'N
300
'11~;"Jl1j?w;"Jtroo"11:1'
©
2012
GuardianNewsandMediaLimitedoritsaffiliatedcompanies.Allrightsreserved.
4/28/12HowabigUSbanklaunderedbillionsfromMexico'smurderousdruggangs
I
Worldnews
I
TheObserver
theguardian
I1heObserver
HowabigUSbanklaunderedbillionsfromMexico'smurderous
druggangs
Astheviolencespread,billionsofdollarsofcartelcashbegantoseepintotheglobalfinancialsystem.ButaspecialinvestigationbytheObserverrevealshowtheincreasinglyfranticwarningsofoneLondonwhistleblowerwereignored
EdVulliamy
TheObserver,Sunday3April
2011
ArticlehistoryAsoldierguardsmarijuanathatisbeingincineratedinTijuana,Mexico.Photograph:GuillermoArias/AP
On10April2006,aDC-9jetlandedintheportcityofCiudaddelCarmen,ontheGulfofMexico,asthesunwassetting.Mexicansoldiers,waitingtointerceptit,found128casespackedwith5.7tonsofcocaine,valuedat
sioom.
Butsomethingelse-moreimportantandfar-reaching-wasdiscoveredinthepapertrailbehindthepurchaseoftheplanebytheSinaloanarco-traffickingcartel.Duringa22-monthinvestigationbyagentsfromtheUSDrugEnforcementAdministration,theInternalRevenueServiceandothers,itemergedthatthecocainesmugglershadboughttheplanewithmoneytheyhadlaunderedthroughoneofthebiggestbanksintheUnitedStates:Wachovia,nowpartofthegiantWellsFargo.Theauthoritiesuncoveredbillionsofdollarsinwiretransfers,traveller'schequesandcashshipmentsthroughMexicanexchangesintoWachoviaaccounts.Wachoviawasputunderimmediateinvestigationforfailingtomaintainaneffectiveanti-moneylaunderingprogramme.Ofspecial
Search History:
Result 00 of 00
00 results for result for
p.
12-04-28 Drug Money Laundering by Major US and International Banks - Compilation of Reports
In the recent Cartagena Summit, President Obama staunchly opposed the Latin American nations call for legalizing drugs, and disregarded the United Nations call for ending the failed "War on Drugs", which cost over 50,000 lives in…
(More)
794
Reads
7
Readcasts
0
Embed Views
Get Scribd Mobile
To get Scribd mobile enter your number and we'll send you a link to the Scribd app for iPhone & Android.We've sent a link to the Scribd app. If you didn't receive it, try again.
We'll never share your phone number.
Recommended
More From This User
Notes
Load more
