Tag Archives: Wachovia

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”…

We know that the global banking system is riddled with corruption (‘vulnerable’ to corruption may be more polite), some authored by its own principals, some embraced opportunistically by financial insiders to snatch sudden profits, a great deal ushered into the world’s financial system by bankers in search of the commissions and corporate profits that ‘high net-worth customers’ (in many cases, money launderers) bring in. And sometimes the bad guys exploit legitimate financial service providers. But the question remains, and it turns on the distinction between deregulation and irregularity, between fair play and laissez-faire, between the right of the ‘haves’ to have still more, and the right of the people to real economic protection under the law.
At what point does financial entrepreneurship turn criminal, and how blind an eye is the US prepared to turn toward banking practices that clearly prosper the powerful and imperil the growing ranks of the poor, in the United States and across the world?

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