International banking has always been subject to laws and rules that apply where their head offices operate as well as via international rules and standards. For an international law to apply, it often has to be codified within a country, as even if the law is accepted and applied through international agreements or treaties, the […]
The phrase “money laundering” conjures images of suitcases crammed with $100 bills being snuck across the border by a drug cartel courier, and funds being wired into and out of bank accounts in a dizzying series of globe-circling transactions. Those are apt examples of two of the three main methods of scrubbing clean illicit funds […]
Staying alive at DHS is a full-time occupation. One slip-up, the chain quivers, the blame starts its downward flow, and if you’re an agent, you’re pulling duty in Pembina, ND, or spending the rest of your working life doodling on a yellow legal pad in an empty room at HQ/DC. So believe me when I tell you that it takes more than a fit of pique to file a legal complaint against DHS Secretary Janet Napolitano, as the National Ice Council has done on behalf of eleven agents who believe that recent policy directives on prosecutorial discretion and the Dream directive on deferred action—are forcing them to choose between enforcing immigration and deportation laws passed by the US Congress in 1996 and their professional careers. Christopher Crane, head of the Council, reports that agents who continue to enforce laws currently on the books—ignoring policy directives from the top instructing them neither to apprehend, arrest, or depart aliens who’ve entered the US illegally or who’ve overstayed their visas (even illegals serving time in US prisons for felonies and misdemeanors)—are targets for disciplinary action….
Given the criminal billions available to ambitious ‘private wealth handlers’ inside the world’s biggest banks, the historic willingness of financial institutions to ‘look the other way,’ and the paltry repercussions, fines and deferred prosecution, for AML (anti-money laundering) non-compliance—it’s clear that powerful incentives continue to drive (and reassure) high-wire account executives ISO under-the-table commissions from traffickers (1-2 percent), and big bonuses from appreciative employers…
For years, the US government, along with FATF (the talking head for the AML community), has told banks the key is to ‘know your customer.’
Wrong.
The message should be “Know your banker.”
Listen.
The easiest way for criminals to launder dirty dollars is simply to pay a banker to do it, someone who manages millions a year for a financial institution that will never look him in the eye and announce, no-punches-pulled, that money laundering is a criminal offense, the kind that can land you in jail.
The New York Times gets it wrong again…after all I’ve written about spin, diversion, and just plain sloppy reporting on Fast and Furious, New York Times reporter Ginger Thompson lands on page A1 with a claim that DEA agents are ‘walking’ narco-dollars into Mexico and back to the cartels the same way ATF, we now know, has been ‘walking’ lethal, military-grade weapons across the US-Mexico border into the hands of cartel killers.
Bunkum.
US Drug Agents Launder Profits for Mexican Cartels isn’t true or fair or even journalism.
What it is, instead, is public relations, a business that, unlike old-fashioned reporting, is safe, simple, and sure to enhance the bottomline for all concerned–corporate owners, editors, and reporters. PR is the new news, the art of pitching client-friendly narratives by pinning them to the general assumptions and fact set of the audience. The New York Times is not the first to go, nor will it be the last.
The point is–it’s working.
Ginger Thompson and the New York Times do us a disservice, not just because they play to our concern for the 40,000 men, women and children already lost to political corruption and criminal greed, but because they portray the commitment of the American people to the rule of law as naïve, misplaced, and unattainable.
Indeed, what the reporter suggests (Is this her aim or just bad research?) is that US law enforcement has proved it is unable to make a difference, that federal agents are bunglers or miscreants, and that, if we aren’t careful, the ‘good guys’ sent in to solve the problem may instead become the worst part of it.
Back up, Ginger. The only kind of money laundering investigations DEA is allowed to conduct today are the kind designed “‘never to embarrass the government of Mexico,” which means US enforcement’s “war against drugs” is, at best, only a skirmish…
It’s only the media–not a special, dedicated tunnel team–who might believe the identification of Guzman as the tunnel mastermind qualifies as breaking news.Any agent who’s worked the southwest border for a while already knows that if a tunnel or any other kind of operation is high-end, it’s almost certainly the work of “El Chapo”…
How much more of the $378 billion transmitted via the casa de cambios and inserted into Wachovia accounts represents criminal revenue is anyone’s guess, because no further inquiries into the origin of these funds has been undertaken.
The bank, now a unit of Wells Fargo, leads a list of firms that have moved dirty money for Mexico’s narcotics cartels–helping a $39 billion trade that has killed more than 22,000 people since 2006. –Michael Smith, Bloomberg Markets Magazine, July7, 2010
“Transnational crime” suggests new answers to an old question: what is the relationship between organized crime and terrorist funding?
Italian politics is always colorful, especially so when Prime Minister Silvio Berlusconi is involved. His latest move gives an ironic twist to corruption fighting. Berlusconi has been accused of everything from womanizing to mafia links, but to date he has mostly slithered out between the fingers of the law. One current trial accuses him of […]
Thursday, New York Times columnist Gail Collins spent significant time mocking New York City councilman Larry Seabrook, who is charged with doctoring a receipt for a bagel sandwich from $7 to $177. Most people around the country aren’t too surprised (but remain disgusted) by such behavior in politicians. Gail Collins should see what I see. […]
The former president of Guatemala, Alfonso Portillo, has been charged with money-laundering in the United States, whose banks he had been using to allegedly embezzle from the Guatemalan government. This is an admirable example of an international effort to fight otherwise domestic corruption.