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washing dirty dollars
by Preston Peet (ptpeet@cs.com) - December 03, 2000

"What are we going to do? We've got the Fortune 500 involved in the drug money laundering-process," said former Drug Enforcement agent and current government advisor on drug trade economics, Greg Passic, to the New York Times (October 10th, 2000).

According to remarks made by Senator Charles Grassley (R-Iowa), chairman of the Senate Caucus on International Narcotics Control (September 21st, 1999), international illegal drug profits have surpassed an estimated $55 billion annually, and "this money obviously has to be laundered."

Grassley's myopic sights, however, are focused upon the Black Market Peso Exchange, through which an estimated $5 billion a year is laundered by "international money brokers, working in league with drug traffickers."

The brokers "sell cheap American dollars, proceeds of the drug trade, to Colombian importers of appliances, cigarettes, liquor and other products. They use those dollars to buy legitimate goods in the United States from top US companies and their distributors. The money brokers often pay for the goods in strange ways, like wire transfers from unrelated third parties," as the process is described in the PBS Frontline special report, Drug Wars: US Business and Money Laundering.

The New York Times (October 10th, 2000) reported on a private meeting (June 6th, 2000) held between twenty senior Fortune 500 companies, US Attorney General Janet Reno, and Deputy Treasury Secretary Stuart Eizenstat. Neither the press nor the public were invited to attend or informed beforehand. Hewlett-Packard, General Electric (described alone among them as a "good corporate citizen" by US Customs man Allan J. Doody, quoted by Frontline), Ford, Whirlpool, Sony, and General Motors, were amongst the corporations represented.

Doody later explained that, "the meeting was called to try and educate companies about how they are being victimized in the drug money laundering process and to enlist their help. The government realizes it cannot arrest its way out of this problem."

Try this rhetoric with Bell Helicopter, which is contributing forty-two helicopters to Plan Colombia, the anti-insurgency/anti-drug package approved by the US Congress. As a consequence of selling a helicopter to Colombian Victor Carranza, Bell is embroiled in a public relations disaster. The helicopter was paid in part with twenty-nine separate money orders and cheques from companies and people who Carranza claims he doesn�t know. Bell claims that it didn�t know of Carranza's rumored connection to drug traffickers and money launderers.

US tobacco conglomerate Philip Morris was sued by Columbia�s taxation office, in another case. Philip Morris products, such as Marlboro-brand cigarettes, were regularly used to launder money through the BMPE in early 2000, were sued in New York's Eastern District Court. Philip Morris was accused in 1995 of laundering $40 million through similar tactics.

So if the cartels are laundering only $5 billion or so a year through US companies using the BMPE, where is the other $50 billion in drug profits mentioned by Senator Grassley going? NarcoNews publisher Al Giordano, says, "a good rule of thumb is that 80% of drug monies go to the laundering agents themselves, that is to say, banks and financial institutions. In that sense Grassley's figure is not that far off. It's his screening process that is myopic. The traditional and stereotypical narco only keeps about 20% of the proceeds, and engages in small time laundering, (i.e. build a hotel where there are no customers, keep it empty but expensive, pay the taxes as if every room is full all year round, and, viola, you have legal proceeds). But the bankers are the super narcos and have been the real capos all along."

Above and beyond the $55 billion figure quoted by Grassley from narco-trafficking, the total illegal money estimated to be annually laundered through US banks ranges from $250 billion to $500 billion.The Bank of New York allegedly has laundered over $500 million via Swiss bank accounts for Russian mobsters and crime syndicates. Two Russian emigres, Peter Berlin and his wife and "former vice-president of the bank," Lucy, were convicted in a US court (February, 2000), New York Times reporter Elizabeth Olson revealed (November 15th, 2000). Peter and Lucy Berlin helped facilitate the laundering, but now investigators are urging that Bank of New York accounts be checked again for even more as-yet undiscovered illicit dirty funds. Is it believable that these two managed to move this much money on their own? Bank of New York accounts are suspected by US authorities of being used to launder "at least $7 billion," between February, 1996, and August, 1999, for a number of Russians trying to avoid Russian taxes.

Associated Press reporter Marcy Gordon uncovered that one of the US's largest banks, Citibank, was also under investigation by the US Senate for its Private Banking services. "Citibank's private banking services cater to the ultra-rich, ultra-corrupt, politically connected who have at least $3 million in their accounts. Other notables who have used Citibank's special private service include Raul Salinas, brother of a former President of Mexico, and who laundered at least US$100 million, the President of Gabon, Omar Bongo, who is reported to have more than US$50 million in his secret account, and the sons of Nigeria's late military dictator Sani Abacha, who have amassed more than US$110 million by some figures." But where are the American names?

Over 350 government officials from around the world have or had accounts Utilizing Citibank's special services, including ex-CIA director John Deutch. The Money Laundering Act of 1986 turned it into a "predicate act," reported Gordon, for US banks to handle money for foreign clients profiting from drug trafficking, bank fraud, and kidnapping, but bribery, theft, and simple fraud are not prosecutable through the Act, "a loophole some in Congress want to change."

No one is above reproach. Even the Vatican, an institutional role-model of steadfast morality and religious faith, has come under recent attacks. The Vatican is urging the US government to dismiss a lawsuit filed against it in California (January 2000), on behalf of victims, and their families, who were robbed, tortured, and murdered by Croatia's World War II-era fascist Ustasha regime.

Along with the Swiss National Bank and the Franciscan Order, the Vatican is alleged to have helped hide "hundreds of millions of dollars in gold, property and cash," stolen from Croatian Jews at the end of the war by the Ustasha. However, Reuters correspondent Michael Khon reported (November 24th, 2000) that the Vatican is claiming sovereign immunity as an independent state from prosecution. What the Vatican is pointedly not asserting is that it is innocent of collaborating in war crimes.

There are senior US government and law enforcement personnel, notably the Departments of Justice and Treasury, that specialize in ensuring that enforcement focus remains anywhere but the top levels of American financial institutions. These officials ensure that the US government's fury and its financial police�s might is targeted at mid-level BMPE brokers, and foreign banks and officials.

Concurrently, US-based Fortune 500 companies that have bought and paid for the very same politicians who write and enact the laws, are getting advice on how to avoid prosecution through legal loopholes, whilst maintaining a public relations stance that they are cracking down upon internal corruption and everyday dealings with white collar criminals and money launderers.

Russian Plot to Launder Money Gets $500 Million Thicker
Read in this New York Times article by Elizabeth Olson (November 15th, 2000), about how The Bank of New York has been under investigation since at least 1998. They allegedly helped some Russians move billions of dollars through the bank and back to European and Russian banks, to avoid paying taxes and fees, and to even simply hide the dirty money's existence.

Schumer-Coverdell Anti-Money Laundering Bill Bars Suspicious Off-Shore Banks From Entering US Market
After watching Senator Schumer's (D-NY) Waco hearings performance, I just can't read anything this guy puts together without thinking of his shameless covering up of US government forces' hideous behavior at Mt. Carmel. Now he and Senator Paul Coverdell (R-GA), this money laundering bill's co-author, are blaming financial centers, often located in obscure countries." But not at the US banks and corporations doing precisely the same thing: taking in billions of dirty dollars. If you read this press release's text (October 21st, 1999), you will learn that "$100 Billion of drug-related money flows through the US each year." How oily snake Schumer got himself elected is a brilliant example of the US electorate not paying the slightest attention to the Congressional record of their elected officials and representatives. Or so I hope. It's scary to consider that there are many Americans who really like this schmuck.

US Business and Money Laundering
This PBS Frontline report is taken from the two-part US Drug War series. Janet Reno and the heads of Fortune 500 corporations had a private meeting in June 2000 to discuss money laundering carried out by these very same companies. There is no way that the US government will stop this practice, as due to the massive amounts of money involved, cessation would wreak havoc on the banking system, and decimate the international money markets.

Drug Money Figure to Get 23 Years in Prison
This Associated Press report (November 21st, 2000) describes how Victor Manuel Alcala, a money launderer for the Juarez and Cali drug cartels, has reached a plea agreement with prosecutors. Alcala, a Mexican national, was involved in the 'biggest drug money laundering investigation in US history," yet does not own or head a New York City bank.

On Cooling Hot Money
Nigel South's money laundering report quotes Bertolt Brecht, "if you want to steal, buy a bank." South's report covers "the diversion of the huge illicit profits of the drug trade into the legal economy," and how trans-national banks and corporations do this. Prohibition is a booming business, with incredible rewards. Hence, the continued War Against Some Drugs. Duh.

Private Banking: Raul Salinas, Citibank, and Alleged Money Laundering
This 1999 US Government Accounting Office report synopsis begins with this bombshell: "Raul Salinas, brother of the former President of Mexico, was able to transfer as much as $100 million between 1992 and 1994 by using a private banking relationship with Citibank New York."

Citibank Probed Over Dirty Money
This Associated Press article (November 9th, 1999) by Marcy Gordon outlines the Senate Governmental Affairs investigation of Citibank, which launders huge sums of money for corrupt despots and drug traffickers, who consequently end up in the upper echelons of the economic tax brackets.

INCSR March 1999: Money Laundering and Financial Crimes
This report "released by the Bureau for International Narcotics and Law Enforcement Affairs, US Department of State," outlines the efforts by the US government and others to stop the easy flow of the ill-gotten gains from international narcotics traders. The report discusses many of the locations where traders launder their dirty money.

Money Laundering: A Framework to Understanding US Efforts Overseas
This GAO report (May 24th, 1996) has a self-explanatory title. The willing blindness of US authorities to clean-up domestic money laundering operations, is once again graphically illustrated. This report was posted by the incredible Organized Crime Registry.

Meeting to Negotiate Money Laundering Policy
This New York Times article discusses the June 2000 secret meeting between Janet Reno and Fortune 500 senior executives to discuss tactics to combat money laundering. "What are we going to do," the article quotes Greg Passic, a former drug enforcement agent, "we've got the Fortune 500 involved in the drug money laundering-process." Guess that means they aren�t going to be subject to the same asset forfeiture procedures that lesser mortals and their businesses are subjected to daily in the US?

Gilbert and Tobin: International Electronic Money Systems and Money
This "ASE Electronic Commerce Conference" paper (February 4th, 1997) presented by Brent Fisse and Peter Leonard in Sydney, Australia, primarily discusses the problems with trying to keep track of criminal-types practicing "net-smurfing": whereby cash is dolled out in small allotments (under $10,000), just slightly less than the amount that banks and financial institutions are required by law to report to the proper authorities. When done via the Internet, it is, supposedly, a difficult task to track by the authoroties. Nudge nudge, wink wink.

Murder, Money, and Mexico
This PBS Frontline series (January 1996 - January 1997) focused on Citibank, one of the bigger money laundering institutions for the world's thieves and killers, and its relationship with the Salinas brothers.

Feds Investigating Falcon Over Money Laundering Allegations
This Associated Press article (October 21st, 1998) outlines the Federal case against Atlanta Flacons wide-receiver Tony Martin, for washing some suspected drug profits fora buddy of his. Hmmm, seems like there must be some bigger targets for these short-sighted Feds; but then, what do I know about money laundering and getting investigated for it? I don't make enough money for anyone to ask me to wash their ill-gotten gains. Maybe in 1998 Martin was America's biggest threat, and so deserved exposure by the US government, while Citibank and the Bank of New York continue on their merry way. Oh, wait a minute, these institutions are under investigation themselves, so perhaps they will get their's too. But I personally doubt it somehow.

Authority Established to Tackle Money Laundering
This Jerusalem Post newspaper article (November 23rd, 2000) discusses the formation of a new money laundering unit to combat this evil trade, now that Israel has found itself listed by the European Union with "non-cooperative" nations in the fight against money laundering. Even the sanctimonious US is threatening to re-classify Israel by January 1st, 2001, making it almost "impossible for them to conduct business with American businesses."

Mexican Standoff
This Sydney Morning Herald article (November 21st, 2000) reveals the story of Carlos Cabal, "Mexico's most wanted man." Cabal is currently sitting in an Australian jail, fighting extradition back to his homeland of Mexico. He is accused of laundering millions of dollars for the PRI (The Institutional Revolutionary Party), which has ruled Mexico for eighty years, until Vincente Fox won in early 2000.

Special Prober Files Corruption Complaint Against Fujimori
Alberto Fujimori, who was Peru's president until November 2000, is suspected, along with his good buddy Vladimiro Montesinos, of laundering $48 million through Swiss bank accounts.

The Bell Helicopter Case
This is another PBS Frontlineepisode about the War Against Some Drugs, specifically detailing what happened when Bell sold helicopters to a known associate of drug traffickers, through a the sale through a convicted drug-trafficking representative of Colombian emerald mine owner Victor Carranza. Bell insists that it had no idea that Carranza had any drug trade connections, even though the helicopter was partially paid for in twenty-nine separate payments totalling $1,029,000 from twenty-nine individuals and companies that supposedly had no ties to Carranza. US agents stumbled upon this during an Alabama money laundering investigation. The further irony is that Bell helicopters are part of the Plan Colombia aid package to combat Columbian narco-trafficking. Yet Bell is undermining Plan Colombia by selling helicopters to known drug traffickers. What gives?

Remarks by Treasury Undersecretary For Enforcement James E. Johnson, St. Regis Hotel, New York City
This is the transcript of a speech by James E. Johnson (April 25th, 2000) in which he details US law enforcement efforts to come up with suggestions for corporations, banks, and other institutions to monitor certain suspect accounts and depositors. There is a growing awareness, which has just occurred if Johnson is to be believed, of how US financial institutions are laundering dirty money.

Vatican Bank Sued by Holocaust Victims
This is information on how to get involved in a significant US class action suit filed in the US on behalf of victims and their surviving families against the Vatican and others for helping the Croatian fascist Ustasha in laundering �hundreds of millions of dollars in gold, property, and money� during the last stages of World War II. The Vatican has asked the US to throw out the suit in late November 2000.

Financial Fraud Institute
Read of the coordination between the FFI and the DEA in implementing handy suggestions for financial institutions in America. Learn about other nifty, not-so-effective methods of combating drug money laundering.

National Money Laundering Strategy 2000
This US government report proposes tightening up the financial screws to stop those dastardly money launderers. The dastardly ones who are laundering billions of dollars per year. Somehow, I seriously doubt this will occur. Requires free Adobe Acrobat reader.

Why Is IRS Criminal Investigation Involved in Narcotics Investigations
Find out why the US government, particularly the IRS, thinks it should be involved in combating the drug trade. Since all income in taxable, even the ill-gotten gains of drugs trafficking comes under their jurisdiction.

Treasury and Justice Issue 2000 Money Laundering Strategy
This is the official press release from the two agencies announcing their "new" strategy for combating money laundering.

Welcome to Indian Agencies Fighting Financial Crimes
"The Government of India is determined to fight all economic crimes," so they have put together this nifty Web site where the public can access every Indian government agency that is working toward this goal.

Title 18: part 1: Chapter 95: Section 1956: Laundering of Monetary Instruments
This is the US federal law on money laundering. Since being passed in 1986, the law has been frequently amended and updated.

Money is Laundered Crooks Get Away Clean
This Associated Press article (September 13th, 1999) by Marcy Gordon focuses on common methods and places that money launderers use to make legal their ill-gotten gains.

The Black Market Peso Exchange-How US Institutions are Being Use to Launder Money
These hearings were held before the Senate Caucus On International Narcotics Control (June 21st, 1999), which explored the various ways that money launderers are manipulating US institutions, and methods to combat these criminal activities.

Disinformation Dossier on Occhipinti Got Too Close
Check out the Disinformation dossier on Occipinti Got Too Close.This dossier discusses the case of Joe Occhipinti, a law enforcer whose investigation, Operation Bodgea, was shutdown when he got too close to CIA-favored drug trafficking and money laundering Dominicans.

Disinformation Dossier on Who Was John Deutch Spying For?
Check out the Disinformation Dossier on Who Was John Deutch Spying For? Read about John Deutch and how he insisted he be allowed to keep his CIA computers when he left their employment. He insisted he was doing his "private banking" on those computers. Regrettably, the CIA agreed.

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