Tagged Launder

PROHIBITION: Banks Launder Drug Cartel Money, Essential To Drug Business, Too Big to Indict 2/3

www.bloomberg.com Banks Financing Mexico Gangs Admitted in Wells Fargo Deal By Michael Smith – Jun 28, 2010 9:00 PM PT The smugglers had bought the DC-9 with laundered funds they transferred through two of the biggest banks in the US: Wachovia Corp. and Bank of America Corp., Bloomberg Markets magazine reports in its August 2010 issue. This was no isolated incident. Wachovia, it turns out, had made a habit of helping move money for Mexican drug smugglers. Wells Fargo & Co., which bought Wachovia in 2008, has admitted in court that its unit failed to monitor and report suspected money laundering by narcotics traffickers — including the cash used to buy four planes that shipped a total of 22 tons of cocaine. ‘Blatant Disregard’ Wachovia admitted it didn’t do enough to spot illicit funds in handling 8.4 billion for Mexican-currency-exchange houses from 2004 to 2007. That’s the largest violation of the Bank Secrecy Act, an anti-money-laundering law, in US history — a sum equal to one-third of Mexico’s current gross domestic product. It’s the Banks “It’s the banks laundering money for the cartels that finances the tragedy,” says Martin Woods, director of Wachovia’s anti-money-laundering unit in London from 2006 to 2009. Woods says he quit the bank in disgust after executives ignored his documentation that drug dealers were funneling money through Wachovia’s branch network. “If you don’t see the correlation between the money laundering by banks and the 22000 people killed
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Research Fellow Adam Creighton on Lateline Business
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