Money Laundering under Government Cover

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Online TahoeBlue

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Money Laundering under Government Cover
« on: January 10, 2009, 11:59:59 PM »
What we are seeing is a consolidation of State Sponsored Money Laundering. With Enterprise Risk Management Tools such as provided by Ptech and E-Systems, TIA - total informational Awareness is creating a centralized system of controlling Global laundering operations. This is in the aftermath of 9.11, as new banking regulations (AML - Anti money laundering) have been implemented. But like the drug traffic, we know the banks are still laundering, with the new laws and rules, how could this be?

In short, authorized transactions will not be "flagged". Also (money) smuggling via diplomatic pouch, I would think could be on the rise.

References:
PROMIS/Ptech makes compartmentalization obsolete. Key to total tyranny & C2  
*E-SYSTEMS* was involved in the 9/11 attacks - *LID BLOWN OFF*, *MUST READ*  
BAE Systems - bribes - Prince Bandar - 9/11 attacks  

http://www.latimes.com/news/printedition/asection/la-fg-drug-money-laundering22-2008dec22,0,5776244.story
Drug crackdown has little effect on money laundering
In many cases, the network that turns ill-gotten gains into legal tender, crucial to operations and lavish lifestyles, continues to spin unhindered.
By Tracy Wilkinson
December 22, 2008
Reporting from Mexico City -- For a B-team, Los Mapaches sure seemed to be living it up. The soccer club from the small town of Nueva Italia in western Mexico had the finest vehicles, new uniforms every game and unusually high salaries.

Little wonder, then, when the team's owner was arrested and accused of laundering millions of dollars for one of Mexico's most powerful drug gangs.

The team was one of many covers, federal prosecutors allege, that Wenceslao Alvarez, alias El Wencho, used to hide and move millions of dollars for the so-called Gulf cartel.

In the Mexican government's bloody, 2-year-old war on drug traffickers, one component of the trade remains largely untouched: money laundering. The network that helps turn ill-gotten gains into legal tender is a crucial linchpin that enables traffickers to live large, expand their operations deep into the U.S., pay off cops and politicians and buy increasingly sophisticated weaponry.

"You can arrest thousands of [traffickers] but if you don't touch the financial enterprises, the business just goes on . . . and becomes more violent," said Edgardo Buscaglia, an expert on organized crime who has advised both the United Nations and Mexican officials.

Until the government goes after traffickers' cash, Buscaglia and other critics say, the networks will continue to grow and fortify themselves, no matter how many state security forces are thrown at them.

Money-laundering is the process of concealing the origin of illicit drug profits by funneling them into businesses (legitimate or fake), real estate and financial institutions.

Estimates vary widely, but as much as $20 billion is laundered and stays in Mexico annually, with up to four times that amount continuing to other destinations, experts and Mexican officials say.

Some of the money is stuffed in suitcases and walked across the border into Mexico, or hidden in cargo containers and shipped. But investigators also suspect international courier services are moving the cash.

Banking controls are notoriously lax in Mexico, making it easier for money to be wired or deposited into accounts, then spent on goods or services. All-cash transactions are common, especially for big-ticket items such as mansions, and Hummers and armored BMWs, and to pay the legions who work for the drug mafias. The money also is increasingly being sunk into artwork, gems, gold and commodities.

Blacklisted

Every year, the U.S. Treasury Department blacklists scores of individuals and companies, most of them Mexican or Colombian, believed to be involved in money-laundering or other activities supporting drug-trafficking networks.

Rarely has the Mexican government acted on the information. Mexican authorities cannot easily confiscate traffickers' property and assets, a practice common in the U.S. and one that helped give the Colombian government an upper hand in cracking that country's cartels.

"It is a very powerful tool against narco-traffickers because it hits their interests -- their purchasing power and their ideal way of life," Colombian Vice Minister of Defense Sergio Jaramillo Caro said during a recent meeting here of Latin American public security officials. A new law that would give Mexicans that authority has been passed only in Mexico City; a national version is languishing in Congress.

The two main agencies that investigate and prosecute suspected money launderers are hamstrung and underfunded. The Finance Ministry's Financial Intelligence Unit and the attorney general's office are required to communicate with each other in writing, a clumsy process, and they are not allowed access to federal police reports, financial records or other key databases to build organized-crime cases.

The case of the Mapaches (Raccoons) was more exception than rule. Federal agents arrested El Wencho in October while he was in Mexico City at the headquarters of a top soccer club. In addition to the Mapaches, El Wencho's holdings included car dealerships, an avocado export firm, hotels and restaurants, prosecutors say.

The alleged money-laundering operation, which authorities say extended into six U.S. states and parts of Central and South America, came to light in September as part of a U.S. federal indictment that named top leaders of the Gulf cartel and led to the arrests of more than 500 people in the U.S., Mexico and Italy.

An estimated $7.6 million of El Wencho's assets were seized by U.S. authorities in Atlanta and other U.S. cities, according to a senior Mexican official who did not want to be named because such investigations are kept secret until a formal indictment is issued. Mexican and U.S. agents spent a year tracking El Wencho's movements through tapped telephones and other surveillance, the official said.

The official said the soccer team was more of a "whim" and not particularly effective at laundering large amounts of money because it was too junior. It may have been a way for El Wencho to curry favor in Nueva Italia, a typical ploy of traffickers who do good works for their hometowns as a way to buy loyalty and protection.

Shrouded in secrecy

Mexican officials say their financial system is relatively unregulated, shrouded in secrecy laws and so complex that it is difficult to penetrate. But critics wonder if politicians blanch at changing those laws because too many of the country's elite would be implicated.

They note that the interior minister, the second most powerful person in the Mexican government, once helped defend a prominent banker who was acquitted in one of the few high-profile laundering cases to reach the courts.

There is also a general, if unspoken, tolerance of laundered money among many Mexicans, who reason that if the dollars have passed through other hands, it no longer is dirty money.

"It has been relatively useless to try to determine the amounts of money being laundered in Mexico," President Felipe Calderon told Congress last month. An official report that Calderon submitted to lawmakers said the Finance Ministry had detected 60,000 suspicious financial transactions in the 12-month period ending in June. But only 0.5% ended up in court.

A handful of money exchange houses are being prosecuted, but the gradual dollarization of the Mexican economy has diminished the role of exchange houses in suspect transactions, experts say.

Five years ago, Mexican authorities arrested accused money-launderer Rigoberto Gaxiola. Yet, from prison, he continued to wash money for traffickers from Sinaloa, the cradle of Mexican drug-running, as recently as summer, U.S. and Mexican officials say. At that point, the U.S. Treasury Department's Office of Foreign Assets Control blacklisted Gaxiola along with 17 associates, including his wife and three children, and 14 of his businesses. However, the Mexican government has not made further arrests, shut down the businesses nor announced any other sanctions.

Efforts to obtain comment from officials of the Financial Intelligence Unit or from investigators with the attorney general's office were unsuccessful.

U.S. officials, meanwhile, worry that money-laundering operations could have deeper security implications.

"Once you've set up the scheme, you can launder anything," a senior U.S. law enforcement official said, speaking on condition of anonymity because of security concerns. "Human slavery, arms trafficking -- even terrorists."


http://www.monstersandcritics.com/news/americas/news/article_1438734.php/Hezbollah_denies_any_link_to_Colombian_drug_money_laundering_ring_

Hezbollah denies any link to Colombian drug, money laundering ring
Americas News


Oct 23, 2008, 14:57 GMT

Beirut - Lebanon's Shiite movement Hezbollah denied on Thursday any links with a drug-ring captured in Colombia and said such reports are aimed at defaming the image of the movement.

'This is part of a Zionist campaign against the movement to defame its picture and they are based on pure lies,' said Nawaf al Mussawi, Hezbollah's foreign affairs officer.

Mussawi met with the Colombian Ambassador to Lebanon, Georgina Mallat and handed her a condemnation letter, which stated that Hezbollah 'does not participate in outlawed missions.'

Colombian authorities said on Tuesday that they had broken up a drug and money laundering ring in an international operation that included the capture of three people suspected of shipping funds to Hezbollah guerrillas.

More than 100 suspects were arrested in Colombia and overseas on charges that they trafficked drugs and laundered cash for Colombia's Norte del Valle cartel and outlawed paramilitaries, in a network that stretched from South America to Asia, the attorney's general office said.

'The criminal organization used routes through Venezuela, Panama, Guatemala, the Middle East and Europe, bringing in cash from the sale of these substances,' the statement said.

Among those arrested in Colombia were three people suspected of coordinating drug smuggling to send some of their profits to groups like Hezbollah, the office said.

Those suspects - Chekry Mahmoud Harb, Ali Mohamad Abdul Rahim and Zacaria Hussein Harb - used front companies to send drug cash overseas, it stated, without providing further details.


http://money.cnn.com/2008/04/26/news/companies/wachovia_mexico/index.htm?section=money_mostpopular

Feds look at Wachovia in drug money probe
The bank is being investigated by prosecutors as part of a probe into alleged drug money laundering by Mexican and Colombian money-transfer companies, according to the Wall Street Journal.
    
(CNNMoney.com) -- Wachovia Corp. is being investigated by Federal prosecutors as part of a probe into alleged drug money laundering by Mexican and Colombian money-transfer companies, according to a Wall Street Journal report Saturday morning.

A Wachovia (WB, Fortune 500) official said the bank is cooperating in the probe, which is also scrutinizing several other large U.S. banks, according to the newspaper. The bank severed its ties to these money transfer firms in December and January, when the investigation began.

The U.S. banking industry has pursued a foothold in the remittance industry, which transmits more than $50 billion from the U.S. to Latin America annually - primarily on behalf of immigrants sending money back to their families. The industry charges high fees to transfer these funds.

But, the Journal said, remittance outfits can also be used by narcotics traffickers seeking to move the proceeds of drug sales between the U.S. and Latin America.

Tough times
The probe comes at a difficult time for the bank, which announced on Friday that it will pay $144 million to settle federal charges that it failed to stop telemarketers from taking advantage of thousands of elderly consumers.

On April 14, the North Carolina-based bank posted a $350 million loss in the first quarter -its first quarterly loss since 2001. Wachovia took a $2 billion charge for "market-disruption" losses in the quarter, and also signaled difficulties with Golden West Financial, which Wachovia acquired in 2006 for $24.6 billion.

Golden West was a leading issuer of so-called option adjusted rate mortgages (ARMs) - loans that give borrowers the right to pay less than the full bill. Wachovia boosted its reserve for possible loan losses on Golden West's portfolio, valued at roughly $120 billion, to $1.1 billion, as late payments nearly doubled to 3.1% of the loans.

In the wake of these problems, the bank cut its dividend and said it plans to raise $7 billion in capital.


http://www.usdoj.gov/ndic/pubs11/18862/money.htm

National Drug Intelligence Center
National Drug Threat Assessment 2006
January 2006
--------------------------------------------------------------------------------
 
Drug Money Laundering
Strategic Findings
Wholesale-level drug distribution in the United States generates between $13.6 billion and $48.4 billion annually.
  
Between $8.3 billion and $24.9 billion in drug proceeds is smuggled out of the United States by Mexican and Colombian DTOs across the U.S.-Mexico border, primarily in bulk through South Texas POEs. These proceeds often are repatriated to a Mexican bank account but sometimes are commingled with legitimate proceeds at Mexican money services businesses (MSBs), then transported back into the United States via legitimate courier companies. Funds transported back to the United States typically are deposited into the MSBs' U.S. bank accounts. From those accounts, the funds are most likely wire-transferred worldwide to correspondent accounts for use by the trafficker or money brokers.  
Recent U.S. government analyses conducted at the request of ONDCP suggest that wholesale level drug distribution generates between $13.6 billion and $48.4 billion annually.5 This range, while broad, indicates the magnitude of revenues generated through wholesale drug distribution in domestic drug markets. Substantially more revenue is generated through midlevel and retail drug transactions; however, significant intelligence gaps concerning the volume and value of these transactions preclude precise and reliable estimative analysis as to the extent of the revenue generated through midlevel and retail drug transactions.

Most drug transactions, whether wholesale, midlevel, or retail, are conducted in cash. As such, large quantities of money generated through drug sales must be laundered in order to insulate traffickers from detection and, further, to minimize the risk that drug proceeds will be seized by law enforcement and forfeited. Most wholesale drug distribution in the United States is conducted by or on behalf of foreign DTOs and criminal groups whose bases of operation generally are located in their home countries. As such, drug proceeds generated by traffickers in the United States must be repatriated by the traffickers to their home nations.6

All DTOs and criminal groups operating at the wholesale level must either launder or repatriate the proceeds they derive through their transactions. However, Mexican and Colombian DTOs, who conduct most of the wholesale drug distribution in the country, carry out most of the wholesale-level drug money laundering in the United States. These DTOs adhere to specific techniques to transport and launder their illicit proceeds, including bulk cash smuggling, use of MSBs and currency exchanges, and the structuring of deposits in traditional depository institutions. Additionally, some Colombian DTOs use the Black Market Peso Exchange (BMPE) to launder their drug proceeds.

Mexican and Colombian DTOs transport their drug proceeds principally in bulk from drug market areas to other U.S. areas and then on to foreign destinations in an attempt to repatriate their proceeds to their home nations. Recent U.S. government analyses estimate that between $5.1 billion and $17.7 billion in wholesale drug Mexico-produced marijuana, methamphetamine, and heroin is transported out of the United States annually, presumably destined for Mexico. It is further estimated that an additional $3.2 billion to $7.2 billion generated through the wholesale distribution of cocaine and South American heroin is transported out of the United States annually, presumably destined for repatriation to Mexico and Colombia. The proceeds destined for Mexico and Colombia are generally transported out of the country across the U.S.-Mexico border, primarily through South Texas POEs. In some cases, drug proceeds smuggled across the U.S.-Mexico border are commingled with legitimate proceeds at Mexican MSBs, then transported back into the United States via legitimate courier companies; they are then deposited into the MSBs' U.S. bank accounts. From those accounts, the funds typically are wire-transferred worldwide on behalf of a trafficker--either to an account maintained by the trafficker or to business associates of the trafficker as payment of a debt.

While a large percentage of wholesale drug proceeds are transported across the U.S.-Mexico border, a significant amount is transported in bulk across the U.S.-Canada border, most likely by Asian DTOs and criminal groups. Recent U.S. government analyses estimate that between $5.2 billion and $21.2 billion generated by the wholesale distribution of Canada produced marijuana is transported out of the United States annually across the U.S.-Canada border, presumably destined for repatriation to Canada. DEA investigations also reveal that some MDMA and marijuana proceeds generated by Vietnamese criminal groups are sent directly from the United States to Vietnam.

Mexican and Colombian DTOs and criminal groups as well as other ethnic traffickers also remove wholesale drug proceeds from the United States using a variety of other money laundering techniques. Money transmitters as well as issuers, sellers, and redeemers of money orders are common MSBs used by traffickers to launder illicit drug proceeds. Of the 297,048 Suspicious Activity Reports by Money Services Businesses (SAR-MSBs) filed with the Financial Crimes Enforcement Network (FinCEN) in 2004, 183,728 resulted from money transfers and 90,954 resulted from the purchase, sale, or redemption of money orders. From October 1, 2002, to December 31, 2004, most SAR-MSBs were filed in California, New York, Arizona, Texas, and Florida.7 Law enforcement reporting and other available data indicate that Mexican DTOs and criminal groups often wire-transfer drug proceeds generated in U.S. market areas to southwestern states--primarily Arizona and Texas--where the transfers often are converted to cash and then physically smuggled across the U.S.-Mexico border. Some of this wire-transfer activity reportedly is associated with illegal alien smuggling organizations.8

Currency exchanges (including casas de cambio) also are frequently used by traffickers to launder wholesale drug proceeds. Such businesses in the United States are used to launder illicit proceeds via wire transfer to foreign destinations or by commingling illicit proceeds with legitimate business earnings, which are then deposited into a U.S. bank account.

Traffickers continue to launder drug profits through traditional depository institutions--banks, savings associations, and credit unions--typically through various structured transactions, including deposits. Depository institutions also are used by traffickers to purchase bank drafts and cashier's checks that can be transferred to any location in or outside the United States. SARs filed by depository institutions increased from 288,343 in 2003 to 381,671 in 2004. From April 1, 1996, to December 31, 2004, approximately half of such SARs were filed in California (24%), New York (11%), Texas (6%), Florida (5%), and Illinois (3%).9

Colombian DTOs and criminal groups also use the BMPE to launder drug proceeds. The BMPE, a process by which money brokers exchange U.S. currency for pesos within the Colombian black market, is most frequently used in cities where Colombian DTOs are active, such as Miami and New York. U.S. government estimates indicate that approximately $3 billion to $6 billion may be laundered via the BMPE annually; however, a former Chief of Colombian Customs narrows that estimate to approximately $5 billion.

Asian DTOs and criminal groups often use informal value transfer systems (IVTS) such as hawala, hundi, and the Chinese Underground Banking System (CUBS) to launder illicit drug proceeds generated in the United States. These systems provide not only anonymity but also a means to transfer funds overseas without using the formal financial systems that are subject to regulatory reporting requirements. Both legally and illegally operated IVTS businesses function in the United States--legally operated IVTS bankers are registered with FinCEN and are subject to regulatory reporting requirements mandated by the Bank Secrecy Act (BSA).10  







Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

Offline Revolt426

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Re: Drug Money Laundering under Government Cover
« Reply #1 on: January 11, 2009, 12:42:42 AM »
If you want to get into dope and dope money laundering look into George Soros, he is the dope king.
"Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate … It will purge the rottenness out of the system..." - Andrew Mellon, Secretary of Treasury, 1929.

Online TahoeBlue

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Re: Drug Money Laundering under Government Cover
« Reply #2 on: January 11, 2009, 02:15:43 AM »
If you want to get into dope and dope money laundering look into George Soros, he is the dope king.

I guess this hits the nail....

http://www.aim.org/special-report/the-hidden-soros-agenda-drugs-money-the-media-and-political-power/

The Hidden Soros Agenda: Drugs, Money, the Media, and Political Power
Special Report  |  By Cliff Kincaid  |  October 27, 2004


How many times have we heard or read stories about Vice President Dick Cheney's old firm, Halliburton, and its alleged influence over the government? A public company with more than 100,000 employees, Halliburton had revenues of $13 billion in 2001. However, George Soros is a human Halliburton who will be in a position if John Kerry is elected president to pull the strings. He is reportedly worth $7.2 billion. But his role in buying the White House for John Kerry has received generally positive coverage. Soros, we're told, is a "philanthropist" committed to "democracy." The Republican Party, by contrast, is supposed to be run by fat cats and Big Business, such as those at Halliburton.

Soros may be the biggest political fat cat of all time. Convicted in France of insider trading, Soros specializes in weakening or collapsing the currencies of entire nations for his own selfish interests. He is known as the man who broke the Bank of England. His power is such that his statements alone can cause currencies to go up or down. Other people suffer so he can get rich. But journalists don't want to examine the questionable means by which he achieved his wealth because they share his goal of electing Kerry and the Democrats.  Curiously, once he made his fortune he became a global socialist, endorsing global taxes on the very means he employed to get rich – international currency speculation and manipulation.

The media consistently ignore the fact that this so-called "philanthropist" has had several brushes with the law as he has laid siege to national economies and currencies. Hard-working U.S. businessmen understand how Soros has made his money. In protesting a Soros appearance hosted by the University of Toledo, Edwin J. Nagle III, president and CEO of the Nagle Companies, highlighted "the immoral and unethical means by which he achieved his wealth." He added, "I certainly didn't see included in his bio the stories on how he collapsed whole country's currencies for his own self interests so that many may suffer."

Here, Soros signed a consent decree in United States District Court, in a Securities and Exchange Commission case involving stock manipulation, and was fined $75,000 by the Commodity Futures Trading Commission for holding positions "in excess of speculative limits." Stories about Soros rarely, if ever, mention any of his legal problems.

Despite his vision of an "open society," he operates an unregulated "hedge fund," open only to the super-rich, and is currently fighting a proposal from the Bush-appointed chairman of the Securities and Exchange Commission to regulate and monitor these offshore entities.  House Speaker Dennis Hastert said on national television that no one really knows where the Soros money comes from. 

Soros has categorically denied receiving money from drug cartels or any form of criminal activity. The fact remains, however, that at least some of his financial operations have been based offshore, in banking and financial centers that are widely reported to be considered conducive to money-launderingThe Soros fund is based in the Netherlands Antilles, a self-governing federation of five Caribbean islands. A CIA factbook describes the region as "a transshipment point for South American drugs bound for the US and Europe; money-laundering center." 

Soros reportedly purchased a major stake in one of Colombia's biggest banks, at a time when the Drug Enforcement Administration, in its study, "Colombian Economic Reform: The Impact on Drug Money Laundering within the Colombian Economy,"  was documenting how major drug kingpins were taking advantage of the liberalization of the economy to put illicit drug revenue into legitimate businesses. The report stated: "U.S. and Colombian Government authorities have evidence of drug proceeds being deposited in every major bank in Colombia... A Colombian source indicated that many banks and businesses are owned covertly by principal members of the Cali cartel."

His complex web of financial interests, companies and foundations makes Halliburton look like a Mom & Pop operation.

The charge we read in the press is that Halliburton gets government contracts and makes money from the Iraq war. Far less attention has been paid to the fact that the company has lost 54 employees as a result of that war. Nobody in the press mentions that Soros profits from the Kosovo war, which he supported as a preemptive strike against Yugoslavia, because he runs an investment fund that now does business there. Even though he pays big bucks to advertise his opposition to the Bush policy of democracy-building in Iraq, reporters still describe him as someone with a reputation for building democracy abroad.

However, his position on Iraq may be a diversion from the real reason he wants to get rid of Bush – his longstanding desire to adopt a national "retreat and defeat" approach to the drug problem.

Soros' long-time goal has been to subvert the national anti-drug policy of the U.S. Government, to move away from the use of national and global law enforcement resources against the drug trade.  He calls this "harm reduction," meaning that criminal activity associated with the use of drugs will supposedly be reduced if the government takes over the drug trade and provides drugs and drug paraphernalia, including needles, to addicts. But law enforcement would still be required to keep drugs out of the hands of children.  If this is not the case, then Soros intends to allow substances such as marijuana, cocaine and heroin to be distributed to children.

If Soros is able to capture the White House and implement his drug policy nationally, millions more people could be led to experiment with dangerous psychoactive substances and damage themselves, their families, and society. Even marijuana, depicted by the media as a "soft" drug, has extremely negative consequences. In the new book, "Marijuana and Madness," one of the editors, Prof. Robin Murray of Britain's Institute of Psychiatry, cites studies and evidence from around the world, some of it going back 40 years, linking the use of marijuana to mental illnesses, including schizophrenia and psychosis.

In a recent article about his growing financial and political clout, the Washington Post sanitized Soros by claiming that he "funded efforts to reform campaign laws, decriminalize marijuana and change [the] criminal justice system." All of that is misleading, if not false. His "reform" of campaign laws left a loophole that will enable him to set a record "for the most money donated by an individual in an election cycle," to quote the Post itself. So where are the investigative stories into Soros and his agenda? 

A key part of the Soros agenda -- his proposed surrender in the war on drugs -- has been carefully concealed from the American people during this campaign. The war on Islamic terrorism is front and center, to be sure, but the war on drugs is still of major concern to millions of Americans, especially parents fearful of the influence of Hollywood and the drug culture.

A Soros role in formulating national drug policy is worthy of special press attention because his pro-drug legalization campaign has been considered at odds with the vast majority of Republicans and Democrats who share the view that legalization would make the drug problem far worse.

In the current campaign, however, a major transformation has taken place. Soros is said to have "privatized" or replaced the Democratic Party by subsidizing many different liberal-left organizations that comprise its political base and creating new ones, the "527" organizations.

Among the candidates who ran for the Democratic presidential nomination, Soros financially supported John Kerry, Wesley Clark, Senator Bob Graham, and Howard Dean. He has been praised by Senator Hillary Clinton and contributed to her Senate campaign and political action committee.  He has also contributed to the political campaigns of Democratic Senators Tom Daschle, Carl Levin, John Corzine, Mary Landrieu, Debbie Stabenow, Charles Schumer, Joseph Biden, Patrick Leahy, Paul Sarbanes, Thomas Harkin, and Barbara Boxer. In 2002, Soros funded Al Gore for president and contributed $153,000 in "soft money" to the Democratic National Committee. Soros, who is also very close to Bill Clinton, was described by Clinton's Deputy Secretary of State Strobe Talbott as a "national treasure."

It is significant that Soros and two of his sons have contributed $2000 each to Brad Carson, the Democratic Senate candidate in Oklahoma. His Republican opponent, Dr. Tom Coburn, was a member of the U.S. House for six years, where he developed a reputation as a leading opponent of efforts to legalize marijuana and fund needle exchange programs that facilitate illicit drug use.  Coburn exposed Soros-style "harm reduction" as a backdoor approach to legalization of illicit drugs. Coburn was also a strong supporter of drug testing and even fought to require drug testing of members of Congress. Coburn and his staff voluntarily underwent drug testing. If elected to the Senate, say his supporters, Coburn would be the chamber's leading voice for protecting children from the dangers of drug abuse and a scientific voice of reason against the Soros-supported movement that seeks to legalize drugs. It's no wonder that Soros and his sons have targeted Coburn for defeat.

Soros has also contributed to Barack Obama, running for the Senate as a Democrat from Illinois. CNSNews.com reports that, "Not only did Soros donate to Obama's campaign, but four other family members - Jennifer, sons Jonathan and Robert and wife Susan - did as well. Because of a special provision campaign finance laws, the Soroses were able to give a collective $60,000 to Obama during his primary challenge."

Soros was described by the New Yorker as close to Harold Ickes, a former Clinton deputy chief of staff who runs the Media Fund, one of many Soros-supported "527" groups. Soros described him as a "real pro."

Away from the scrutiny or even the notice of the establishment press, Soros has emerged as a counter-culture hero.

The drug culture magazine, Heads, calls him "Daddy Weedbucks," ran an excerpt from his book, Soros on Soros, and declared that "he drops the bucks exactly where they're needed."  The September-October issue of the drug culture magazine High Times recognizes the stakes, noting that there are "ten reasons to get rid of Bush" and that one is that there will be "No legalization of pot" under Bush. The implication of the article was that the situation would change under Kerry.

None of this is being reported, however, by the major media.

His partner, Peter Lewis, whitewashed by the Post as "one of the country's 10 most generous philanthropists," was actually arrested in New Zealand for "importing" drugs, including hashish and marijuana.

The Human Halliburton

The media call him a billionaire "philanthropist" who "promotes democracy" and "democratic institutions" abroad.  He has been invited to address the National Press Club on October 28, 2004, just before the election. But admitted marijuana user George Soros, who says he tried marijuana "and enjoyed it," doesn't just "give" money away. He spends money for a purpose because he wants to remake America and the world.  He is depicted in a recent lengthy New Yorker article by Jane Mayer as well-intentioned, not that concerned about money, the victim of scurrilous attacks, and someone who simply wants his "ideas" to "be heard." This is typical of the fawning coverage of Soros. Mayer made a brief reference to his collaborator, Peter B. Lewis,  and his funding of "efforts to decriminalize marijuana," but she failed to explore how Soros is himself committed to legalizing dangerous drugs. Mayer did disclose that a meeting was held in August, after the Democratic Party convention, of what critics call a "billionaire conspiracy" to defeat Bush.  Soros and Lewis were among the participants in the meeting, which was supposed to be kept private. 

Soros' strong opposition to President Bush's effort to create democratic institutions in Iraq contradicts his alleged support for democracy. But the media don't point this out because they oppose Bush's Iraq policy. Mayer, who interviewed the billionaire at length, suggests that Soros may be "looking for influence [in a Kerry Administration] to get out of Iraq" but that to pursue such an objective in exchange for his financial support to the candidate might be deemed "not appropriate" by some observers.

It would be unwise for the public to dismiss the idea that he would not demand implementation of his other "ideas," including drug legalization.

Sometimes described as an atheist or agnostic, Soros has announced a vision of a secular "open society." However, his agenda of drug legalization has remained largely hidden from public view during the current campaign.

While Soros may not want to openly talk about what he would expect out of a Kerry Administration, his allies have obviously been giving it much thought.

At the 2004 conference of the National Organization for the Reform of Marijuana Laws (NORML), Ethan Nadelmann of the Soros-funded Drug Policy Alliance  was asked about his association with Soros and the billionaire's attempt to put John Kerry in the White House. The questioner asked, "Are we going to get some Supreme Court justices out this?" Nadelmann modestly answered, "We will see," and cautioned that it may be difficult to deliver "all the goods."

This is critical because the U.S. Supreme Court is already considering the matter of the several U.S. states that have laws on the books permitting some form of "medical marijuana" use, a violation of federal law, and could return to the subject in the future. The Court is expected to rule by June 2005 on a 9th U.S. Circuit Court of Appeals decision, challenged by the Bush administration, that bars federal agents from interfering with the growing and use of marijuana by two women in California.

Hollywood has already been captured by the illegal drug lobby.

At the 2004 NORML conference, Allen St. Pierre of the NORML Foundation described how various U.S. television programs "have previewed marijuana in a way ultimately positive." He named them as ER, Chicago Hope, the Practice, Sybil, Murphy Brown, Sports Night, Becker, West Wing, Roseanne, Sex in the City, Six Feet Under, Whoopi, Montel, That 70s Show,  and the Larry David Show. "These shows are seen by tens of millions of people," he said. "So that's what it's so crucial that we're able to capture—and to demonstrate the change in—culture."

The challenge for the drug culture is now to capture the U.S. Government. Soros is their front man.

Bloomberg.com quoted Strobe Talbott, U.S. deputy secretary of state from 1994 to 2001, as saying, "Whenever George Soros called and asked to meet, I would move heaven and earth to do so. I treated him like the foreign minister of another country because of all that he had done." Even under the Bush Administration, Soros has been considered an important and influential figure. He gave a September 16, 2003, speech at the State Department on "America in the Global Community: Building Long-Term Security." 

So think about the clout he would have if he almost single-handedly buys the White House for John Kerry and plays a role in the election of several new Senators.

Rather than investigate the source of the Soros money, Washington Post columnist Harold Meyerson has praised Soros for engineering the "privatization" of the Democratic Party through funding of the "527" political groups and bypassing what he calls an incompetent Democratic Party apparatus.  At the far-left "Take Back America" forum in June, Soros was photographed greeting Senator Hillary Rodham Clinton, who introduced him to the group. She told the crowd that, "we need people like George Soros, who is fearless and willing to step up when it counts." He stepped up with his money.

However, Meyerson and New York Times columnist Paul Krugman  have attacked House Speaker Dennis Hastert for raising questions about where Soros gets his money. 

A professed believer in democracy, Soros has used the "527" loophole in a campaign finance law that he promoted to restrict the political activities of "special interests." He has set a record "for the most money donated by an individual in an election cycle."  Those "special interests" turned out to be other people — not him.  He has since poured millions of dollars into anti-Bush groups and voter registration drives, some marked by alleged fraud, for the Democratic Party. 

His commitment to democracy is never questioned. Typical of the pro-Soros media coverage was a USA Today story on June 1 that gave Soros credit for freeing millions of people from communism and "supporting democracy." The story ignored his insider trading conviction. While Soros provided some funding to anti-communist groups during the Cold War, his career has been designed to make money and extend his influence over nations and people. Communism was a threat because it was not hospitable to his investments.

An excellent example of how he operates is Kosovo. As indicated earlier, it is relevant to note that, after the Soros-supported war on Kosovo,  a province of Yugoslavia, a Soros fund announced in 2000 that it was investing $150 million -- with loan guarantees from the U.S. Overseas Private Investment Corporation -- in the Balkans. It was called the "Southeast Europe Equity Fund." By 2002, the OPIC-supported size of the investment had risen to $200 million and OPIC announced that Soros Investment Capital, Ltd. Fund Yugoslavia had acquired a controlling stake in Eksimbanka, a private commercial bank in Serbia, and had financed the start-up of Serbia Broadband Networks, the leading cable television and broadband services company in Serbia.

What's more, his "open society" doesn't extend to himself. He unregulated "hedge funds," open only to the super rich, are beyond public scrutiny or the interest of the press.  In a curious chapter of his career, he reportedly invested in an energy company run by George W. Bush, in an unsuccessful attempt to buy influence with the Bush family.

As noted, in another curious development, the global capitalist has become a global socialist advocating a global tax, known as the Tobin Tax, on the means by which he exploited the global capitalist system and became rich – international currency speculation and manipulation. Soros has declared that the Tobin Tax is a "valid suggestion" for raising international revenue and that opposition to implementing the tax can be overcome. What has not been reported  is that Thomas Palley, the director of the Globalization Reform Project at Soros' Open Society Institute, was a featured speaker at a January 2003 event in Washington, D.C. to discuss how to implement the tax.

"He made his money the old-fashioned way, on Wall Street," wrote Post columnist Harold Meyerson. In fact, he made his money through investment techniques that are not available to ordinary investors, and his financial interventions can affect nations and their economies.

Soros claims that the "527" organizations he funds "file detailed and frequent reports with government regulators." On the January 9 NOW With Bill Moyers program on PBS, Charles Lewis of the Soros-funded Center for Public Integrity argued that while Soros was funding 527 groups, Soros was disclosing these contributions and that the money could be tracked. 

Again, that begs the question of where he gets his money.

His use of that loophole -- in a law that he promoted to restrict the influence of outside "special interests" on political campaigns -- is suspicious and curious on its face. Equally curious, Soros claims that the Bush Administration's reaction to 9/11 and the invasion of Iraq caused him to spend millions of dollars through these "527" organizations to defeat Bush.  However, Soros favored the Clinton Administration's preemptive attack on Yugoslavia, in the absence of any threat to the U.S. and without U.S. Congressional authorization.

While Soros runs around the country talking about defeating Bush, mostly because of his Iraq policy, he is using his money to target other candidates who have prosecuted the war on drugs.

The pro-Soros national media have refused to examine the implications of a ruling by New York State Supreme Court Justice Bernard Malone. He ruled that it was improper for the Soros-backed Working Families Party to get involvement in a Democratic primary for District Attorney and he referred the case to local prosecutors and New York Attorney General Eliot Spitzer for a possible criminal investigation.  Thanks to the money provided by Soros, David Soares defeated incumbent District Attorney Paul Clyne in the Democratic primary. At the time of Clyne's defeat, Ethan Nadelmann of the Soros-funded Drug Policy Alliance Network said he was proud that his group had "contributed to this race" and that "what happened in Albany" has "national resonance." That suggested to some that Soros, if he is successful in putting John Kerry in the White House, would change the nation's anti-drug policy.

The Criminals Lobby

Soros, who lives in New York, has also contributed $150,000 to a California ballot measure, proposition 66, to overturn the three-strikes law, which mandates prison terms of 25-years-to-life for defendants convicted of a third felony. The ballot measure is opposed by the state's district attorneys and law enforcement agencies.

In other unsavory connections, a Soros grant was given to Linda Evans, who was pardoned by Bill Clinton for her involvement in the Weather Underground terrorist group. The Weather Underground was involved in the 1981 Brinks robbery, in which three murders were committed, and a series of bombings, including the bombing of the U.S. Capitol in November 1983.

The Baltimore, Maryland, branch of the OSI on May 12 hosted Bernardine Dohrn, another former member of the Weather Underground who once expressed solidarity with mass murderer Charles Manson,  at a forum on criminal justice issues.  Speaking to a Weather Underground "war council" in Michigan in 1969, Dohrn gave a three-fingered "fork salute" to Manson. As noted by Ami Naramor of The Claremont Institute,  "Calling Manson's victims the 'Tate Eight,' Dohrn gloated over the fact that actress Sharon Tate, who was pregnant at the time, had been stabbed with a fork in her womb. 'Dig it. First they killed those pigs, then they ate dinner in the same room with them, they even shoved a fork into a victim's stomach! Wild!'" Dohrn, now an associate professor and director at Northwestern University's Children and Justice Center, was a member of the advisory committee of the "children's rights watch" project of Human Rights Watch,  funded by Soros.

Not coincidentally, the drug culture has embraced the Weather Underground. High Times magazine has called David Gilbert, a Weather Underground member now in prison, an "anti-imperialist political prisoner" and has hailed his book, No Surrender.  High Times says Gilbert works behind bars for "prisoners' rights" – a favorite cause of Soros.

The latest development is creation of "Cannabis Consumers," a bizarre organization of out-of-the-closet illegal pot smokers, formed to celebrate and glorify the drug. Director Mikki Norris, who says her group received a grant from the Soros-funded Drug Policy Alliance, says, "we honor George Soros."

The Soros-supported Drug Policy Alliance supports "marijuana clubs" currently dispensing the drug, supposedly on "medical" grounds. The federal government has tried to close down these clubs—a policy that could change if Soros gains access to and influence over the White House. Several states have passed "medical marijuana" initiatives, funded by Soros, attempting to provide the drug under the cover of treating illnesses. But the American people have been kept in the dark about whether the Soros campaign to weaken drug laws would be embraced and implemented on a national basis by a Kerry Administration.

One of the few reporters to question the Soros agenda is John Berlau of Insight magazine,  who asked whether Soros would benefit financially from his huge expenditures on political activity. Michael Vachon, the spokesman for Soros Fund Management in New York City, said,  "I have no faith in the ability or desire of Insight magazine to portray George Soros' activities in an unbiased manner." Pressed, he said, "There's no relationship between the policy prescriptions George Soros recommends and his own financial holdings. He doesn't make policy recommendations to increase his own personal wealth. That's not what motivates him." 

There can be no doubt, however, that if the Soros plan for drug legalization goes forward, there would have to be an official infrastructure in place to finance drug production and distribution and handle the enormous profits that will be made from legalization. Legalization will not eliminate drug profits, it will only transfer some of them to government and "legitimate" industries. Soros could be poised to invest in those industries and companies.

He is laying the groundwork for the creation of a system under which government and corporations would legalize, dispense and advertise hard drugs, much like tobacco or alcohol, and supply addicts with needles and drug paraphernalia. In effect, Soros appears to be financing drug legalization for the purpose of creating a new market for federal payments to underwrite drug purchases for addicts.  Soros appears to favor an indoor version of "Needle Park," where addicts come to government offices to inject or smoke their drugs at taxpayer expense.

His position is also reflected in his funding of the ACLU,  which itself favors the legalization of all drugs—even heroin and crack cocaine—and opposes virtually all measures taken to curtail drug use. In another example of its extremist approach, the group has rejected funds from the Ford and Rockefeller Foundations, and participation in the Combined Federal Campaign, because acceptance of the money would require adopting measures to make sure it does not employ terrorists or support terrorist activity.

Soros hired Aryeh Neier as president of his Open Society Institute (OSI) in 1993. Neier worked for the ACLU for 15 years, including eight as national director. 

Typically, Soros and his cronies present the current "war on drugs" as draconian, a huge waste of money and a threat to civil liberties. Legalization is then presented, usually couched in terms of reducing the harm associated with illegal use and procurement of drugs. The audience is never presented with a third option—eradication of drug crops at home and abroad, an intensified military/intelligence effort against drug lords abroad, tougher sentences for users and dealers, and more drug testing.

In 1995, Soros made a major contribution to the Council on Foreign Relations,  which two years later, under the leadership of Mathea Falco,  released a comprehensive report on U.S. international drug control strategy, entitled, Rethinking International Drug Control. However, A.M. Rosenthal of the New York Times, who participated in the task force that drafted the report, declined to endorse it, saying that it "is so negative in substance and tone about United States efforts to stem drug use, production and distribution that it amounts to an invitation to drop those efforts…"

Soros clearly has his sights set on global policy on drugs. Soros was a signer of a 1998 letter to U.N. Secretary-General Kofi Annan urging a radical revamping of global anti-drug policies. Another signer was Morton H. Halperin, a former Department of Defense and National Security Council Official. 

In a typical laudatory article about Soros, USA Today author Rick Hampson made a brief reference to his belief in "liberalized drug laws." Nothing was said, however, about how Soros has managed to liberalize or weaken those laws across the country, and how he has his sights set on national anti-drug policy. The National District Attorneys Association says that since 1996 "incremental changes in state drug laws have continued at an alarming rate across our nation" and they are designed to "ultimately legalize drugs." Soros was identified in this report as one of the wealthy individuals behind this "very well financed" drug legalization movement that is "highly adept at manipulating the media." 
In an October 18 Newsweek story, "Can a Billionaire Beat Bush?"  writer Marcus Mabry  said that Soros will "be there" even if Bush wins, ready to "build a new left…" Soros and other " wealthy progressives," he says, "will set about assembling the infrastructure," including think tanks, foundations, and civic groups, of this "new left."

But Soros has already done this. The late left-wing writer, Walt Contreras Sheasby, noted that the Soros influence "is one of those hushed secrets inside the left…" and that he has subsidized "many of the activist groups, luminaries and publications of the American left…" 

Mabry completely ignored his pro-drug legalization agenda and erroneously claimed that his involvement in this year's presidential campaign is "his first significant involvement in American electoral politics." Mabry ignored Soros's funding of at least 19 initiatives to weaken drug laws.

Journalists carefully conceal their own conflicts of interest. On the Public Broadcasting Service (PBS) NOW With Bill Moyers program on January 9 of this year, Moyers interviewed Charles Lewis of the Center for Public Integrity about the big money supporting the presidential candidates. But little time and attention was paid to how Soros was trying to buy the White House and pouring millions of dollars into groups such as MoveOn.org to bring this about. Moyers, former press secretary to President Lyndon Johnson, failed to tell his viewers that he is on the board of Soros' Open Society Institute and that it has funneled $1.7 million into Lewis and his Center for Public Integrity. Moyers had conducted and aired an interview with Soros on September 12, 2003, where he declared, "The Republican Party has been captured by a bunch of extremists…" Soros was presented as an opponent of unchecked capitalism and a supporter of democracy and nation-building abroad.

The power of the Soros-supported media network was demonstrated in mid-October when a controversy emerged over Sinclair Broadcasting airing parts of Stolen Honor, a film raising questions about the detrimental impact of John Kerry's 1971 anti-war testimony on U.S. Vietnam POWs being held by the communists. Kerry had branded U.S. soldiers as war criminals, and POWs interviewed in Stolen Honor said this resulted in more torture to them. The Democratic Party, the Kerry campaign, and various groups denounced Sinclair for planning to air Stolen Honor. MediaChannel.org, Common Cause, the Alliance for Better Campaigns, Media Access Project, Media for Democracy, and the Office of Communication of the United Church of Christ held an anti-Sinclair news conference. They denounced Sinclair for allegedly abusing the public airwaves by planning to air "propaganda."  All of these organizations -- except for the possible exception of the Office of Communication of the United Church of Christ -- are funded by Soros.

Media Matters, a left-wing media watchdog group that was also pressuring Sinclair to abandon plans to air the testimony of the former POWs, was "developed" with help from the Center for American Progress, funded by Soros.

The attack on Sinclair had the effect of diverting attention away from the extensive and controversial media connections of Soros, his foundations, and the organizations they subsidize, and legitimate questions about the Soros-supported candidate John Kerry.  These groups – and the many prominent journalists who serve on their boards – make Sinclair look penny ante.

Pro-Soros media coverage dates back many years and continues to the present day, as detailed in this report.  In 1996, Dan Rather's CBS Evening News highlighted him as a philanthropist and humanitarian, someone who had made a fortune but was now making a difference. The story by correspondent Anthony Mason ignored his commitment to legalization of drugs.

That same year, Judith Miller of the New York Times wrote that he was "bringing his philanthropy home." While she made a brief reference to his drug legalization agenda, the headline over the piece said he was committed to "social justice." His close adviser, Aryeh Neier, a longtime ACLU official, was described merely as a "human rights advocate."

On the far left, The Nation magazine and its Nation Institute have been supported by OSI. The magazine published a generally flattering piece about the Soros-funded Center for American Progress.

In 1994 Soros received the Burton Benjamin Memorial Award at an International Press Freedom Awards dinner, sponsored by the Committee to Protect Journalists. Five years earlier, OSI gave 4 grants, totaling $220,000, to the Committee to Protect Journalists. Benjamin was senior executive producer at CBS News and served briefly as chair of the Committee to Protect Journalists before his death in 1988. 

The Soros media connections include:

An investor in the Times Mirror Company, Soros funded the Project on Media Ownership, headed by Professor Mark Crispin Miller at New York University. Whose purpose was expose "media concentration." A total of $300,000 over several years came from George Soros' Open Society Institute (OSI). In 1999, a survey commissioned by the Project on Media Ownership and the Benton Foundation and paid for by OSI  found that seventy-nine percent of adults would favor a law requiring commercial broadcasters to pay 5 percent of their revenues into a fund for public broadcasting.

Eric Alterman of The Nation has hailed Soros for spending millions on "education campaigns with America Coming Together, voter mobilization drives with MoveOn.org and research activities with the Center for American Progress (CAP)--where I am a senior fellow…" Alterman says his own magazine, The Nation, is viewed as out of the mainstream in part because of "the continued appearance in its pages of a long-time Stalinist communist, Alexander Cockburn, whose unabashed hatred for both America and Israel ... tarnish the reputation of its otherwise serious contributors." Alterman's mentor, I.F. Stone, was a paid agent of the KGB and a Stalinist.

In the Los Angeles Times Book Review, Orville Schell said that Soros had written a "succinct and well-reasoned book," The Bubble of American Supremacy, which ought "to provide a welcome template for how the candidates might begin to think their way through to a more coherent view of America's place in the world." Soros had spoken on March 3 at the Goldman Forum on the Press and Foreign Affairs, sponsored by UC Berkeley's Graduate School of Journalism.  The event was a conversation between Soros and Journalism Dean Orville Schell.

OSI gave $60,000 to the Independent Media Institute , whose executive director, Don Hazen, is a former publisher of Mother Jones.  Hazen has called Soros a "progressive philanthropist." A story carried by the Independent Media Institute on its AlterNet project says Soros "believes in democracy, positive international relations and effective strategies to reduce poverty, among other things."

OSI gave a $75,000 grant to the Center for Investigative Reporting. The group's board of advisers includes prominent journalists.

OSI gave $246,528 to the Center for Public Integrity, headed by former CBS News producer Charles Lewis, "to support the continuing expansion of the International Consortium of Investigative Journalists."  A total of $1 million went for "the Global Access Project." In total, it is estimated that the group has received $1.7 from Soros.

OSI gave $200,000 to the Fund for Investigative Journalism.  This group, too, features prominent journalists on its board.

OSI's "Network Media Program" gave $22,157 to Investigative Reporters & Editors.

Soros Foundations have provided $160,000 to MediaChannel.org, a so-called "media issues supersite, featuring criticism, breaking news, and investigative reporting from hundreds of organizations worldwide." The executive editor is Danny Schecter, a former news program producer and investigative reporter at CNN and ABC. It was created by Globalvision News Network, whose board includes "Senior executives from the world's leading media firms."

OSI has contributed $70,000 toward the far-left Independent Media Center, or Indymedia, known as an "independent newsgathering collective," whose servers were seized by a federal law enforcement agency on October 7. The action was apparently related to an investigation into international terrorism, kidnapping or money laundering.

OSI provided $600,000 to the Media Access Project, a so-called telecommunications public interest law firm critical of conservative influence in the major media.

OSI provide $30,000 to the Media Awareness Project, a "worldwide network dedicated to drug policy reform" and promoting "balanced media coverage" of the drug issue.

OSI provided $200,000 to the Association for Progressive Communications, "an international network…working for peace, human rights, development and protection of the environment…"


Considering all of the money that Soros or his organizations have provided to news organizations, it should be no surprise to learn that journalists love him.  His web site advises visitors to "read about George Soros from The New York Times, USA Today, Time Magazine, et al.," all of which are reprinted on the site and highly favorable. His new web site features several complimentary statements about Soros from articles in the press and media figures.

Either the media fear his wealth and power, they favor his positions on the issues, or they want access to his money. The people have a right to know.


Cliff Kincaid is the Editor of the AIM Report and can be reached at cliff.kincaid@aim.org
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

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Re: Drug Money Laundering under Government Cover
« Reply #3 on: January 13, 2009, 03:35:50 AM »
As for further indication, look at the smuggling too...  38 Tons of Cocaine ...

So they do it all, they move the drugs and the cash... they move it all, blood diamonds, gold, weapons, whatever....
search on  E-systems

http://forum.prisonplanet.com/index.php/topic,61440.msg367367.html#msg367367


http://www.madcowprod.com/07052006.html
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

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Re: Drug Money Laundering under Government Cover
« Reply #4 on: January 14, 2009, 08:26:20 PM »
FTR #412 The Engineer Intends To Wreck The Train


Introduction: FTR#412 documents a frightening political and economic scenario involving an impending fiscal catastrophe for the United States that, in turn, portends a devastating political crisis. In several recent broadcasts, Mr. Emory has used the phrase “the engineer intends to wreck the train” in order to describe the economic and foreign policies adopted by the Bush administration. Beginning with a column by brilliant New York Times economic columnist Paul Krugman, the broadcast highlights his use of almost identical phraseology to express the view that the radicals in the administration intend to produce “a fiscal train wreck” with their suicidal tax cutting policies. This “fiscal train wreck,” in turn, is designed to force the elimination of social programs that the American people would not otherwise support. In this context, one should not fail to note Mr. Emory’s past observations that this administration is the point element of the deadly Bormann organization—quite literally a Third Reich gone underground–s and is designed to subjugate or destroy the United States of America. At the core of this gambit is the goal of bankrupting the U.S. by slashing revenues and drawing the country into a protracted and costly military struggle against the Muslim population of the Earth Island—themselves serving as proxy warriors for the Underground Reich. (For more about the concept of the Earth Island, see—among other programs—FTR#’s 396, 400 and the broadcasts noted in FTR#391.)
...
20. Further down in the text of the Dissent article, Ms. Komisar discusses the amount of wealth of US-based multinationals that is believed to be in tax havens, as well as the percentage of overall world wealth secreted in these repositories.

“ . . . The money involved is monumental. Secrecy havens have 1.2 percent of the world’s population and hold 26 percent of the world’s wealth, including 31 percent of the net profits of U.S. multinationals. According to Merrill Lynch & Gemini Consulting’s ‘World Wealth Report’ for 2000, one third of the wealth of the world’s ‘high net-worth individuals’ (as banks like to call them), nearly $6 trillion out of $17.5 trillion, may now be held offshore. Some $3 trillion is in deposits in tax haven banks and the rest is in securities held by IBC’s and trusts. Experts believe that as much as half the world’s capital flows through offshore centers. The International Monetary Fund (IMF) says that between $600 billion and $1.5 trillion of illicit money is laundered annually, equal to 2 percent to 5 percent of global economic output. These offshore centers awash in money are the hub of a colossal, underground network of crime, fraud, and corruption.”

Ibid.; p. 7.

21. The same tax havens and offshore financial repositories are mainstays of corporate maneuvering, terrorist-financing, drug-dealing and weapons trafficking. The remarkable Lucy Komisar—showing more moxie and character than the overwhelming majority of American journalists—braced secretary of Defense Donald Rumsfeld about Saddam Hussein’s use of offshore havens to bank his ill-gotten gains.

“It hasn’t been reported in the U.S. press—until here, now—but in Milan, Italy’s chief prosecutor has obtained thousands of documents that show how for more than 20 years Saddam Hussein used the Western bank and corporate secrecy system to launder bribes skimmed from oil revenues to pay his security forces and buy Western arms during international embargoes. The key countries—whose governments openly allow these money-laundering systems to exist—were Switzerland, Liechtenstein, Panama and Nassau. Corporate registrations and bank accounts there use ‘straw men’ and secrecy rules to cover up true owners of companies and accounts.”
“Rumsfeld Queried on Offshore Banking Reform” by Lucy Komisar; The American Reporter; 5/27/2003 [Vol. 9, No. 2112]; p. 1.

22. “On Tuesday (May 27), Defense Secretary Donald Rumsfeld was at the Council on Foreign Relations in New York, and I asked him what the U.S. planned to do about this system that financed and armed Washington’s latest nemesis. This was the question: ‘It’s been shown by investigations by the prosecutor of Milan in Italy, which has gotten thousands of documents about banks accounts in Europe, particularly Switzerland and Liechtenstein and then also Panama, that these were the accounts through which Saddam Hussein hid the rake-offs he was getting from Western companies that were buying his oil—that allowed him to get money for weapons over the 80’s and 90’s. This bank and corporate secrecy is what allowed this to happen. I assume the Americans know about this. Are you going to do anything about this system that allows them to get weapons illegally?’”

...
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

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Re: Drug Money Laundering under Government Cover
« Reply #5 on: March 11, 2009, 01:13:28 AM »
Just don't watch the wrong people now...

http://www.reuters.com/article/businessNews/idUSN1942917520070419
Global banks to make wire transfers easier to track
Thu Apr 19, 2007

WASHINGTON (Reuters) - Major global banks and the association that clears their payments said on Thursday they will take steps to make it easier to track international wire transfers as the U.S. Treasury Department wants them to do.

The Wolfsberg Group, which represents 12 major global banks and the Clearing House Association, said they were doing so "to promote the effectiveness of global anti-money laundering and anti-terrorist financing programs."

U.S. Treasury Under Secretary Stuart Levey, who has led a campaign to encourage banks to do more to track payments so that terror groups and criminals are more easily detected if they use wire transfers, said it was a welcome action.

It will help keep the financial system "safe, sound and secure from abuse," Levey said. The Treasury has been working with the Society for Worldwide Interbank Financial Telecommunications, or SWIFT, the bank cooperative that will develop a new payment message format.

Disclosure last year that the U.S. Treasury began issuing subpoenas after the September 11, 2001, attacks to SWIFT to force the European-based organization to open its databases to U.S. agents caused outrage in Europe.

A press release from the Clearing House Association said the new message format "would include more detailed information about those conducting wire transfers in certain instances" without providing any detail.

The Wolfsberg Group includes ABN AMRO, Banco Santander Central Hispano, Bank of Tokyo-Mitsubishi UJF, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan Chase, Societe Generale and UBS.

http://www.banktech.com/regulation/showArticle.jhtml?articleID=212900070

Banco Santander Chooses Anti-Money Laundering Solution from Norkom Technologies
 
Anti-Money Laundering and Watch List Management software will monitor bank’s transactions across all customers and accounts.
 
By Peggy Bresnick Kendler
January 13, 2009
 
Banco Santander (Madrid) will implement the Anti-Money Laundering and Watch List Management software from Norkom Technologies (Dublin).
The bank will implement the solution in Santander AML Units in a deal that marks Norkom's entry into the Spanish financial services market. Under the terms of the agreement, Banco Santander can deploy the product suite across all its European and Latin American operations, helping it comply with national and international regulations such as the 3rd EU Money Laundering Directive. The first implementation will be in Spain.

Norkom's enterprise-wide Anti-Money Laundering and Watch List Management software will monitor Banco Santander transactions across all customers and accounts to detect, investigate, manage and report potentially suspicious behavior. The bank will be automatically alerted if any individual or entity attempting to transact with it is listed on any of the numerous and diverse watch lists issued by regulators.


http://ec.europa.eu/internal_market/company/docs/financial-crime/aml-news-122008_en.pdf
EU AML News -
Newsletter for the Committee on the Prevention
of Money Laundering and Terrorist Financing*

G-20 Summit on Financial Markets and the World
Economy
Leaders of the Group of Twenty held a summit in Washington on November 15, 2008 amid serious turmoil in the world economy and financial markets and during which they agreed on the need to implement reforms that will strengthen financial markets and regulatory regimes so as to avoid future crises. One of the multiple objectives of the reform outlined during the meeting was the promoting of the integrity of the financial markets.
The world leaders stressed the role of FATF in achieving this objective and urged it to continue its important work against money laundering and terrorism financing which contributes to protect the global financial system from illicit financial activity.

Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

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Re: Drug Money Laundering under Government Cover
« Reply #6 on: March 11, 2009, 01:35:03 AM »
More about Norkom ... or TIA in financial systems management ....
 
http://www.lsec.be/index.php/expert/expert/norkom_tech/

Norkom Technologies is a leading player in the financial crime and compliance market sector. Our software suite is deployed in more than 100 countries across four continents and monitors millions of transactions a day for global financial services clients.

We enable clients to fight crime and meet the most stringent demands of the regulator with a portfolio of products that address every aspect of crime and compliance - from money laundering to fraud.


Customers KBC, Fortis Bank, HSBC, Credit Agricole, The Depository Trust & Clearing Corporation, Western Union, Standard Chartered Bank, AXA, Visa, Euroclear, ...

http://www.leuveninc.com/pooled/articles/BF_NEWSART/view.asp?Q=BF_NEWSART_122379

NORKOM TECHNOLOGIES ACQUIRES EUROPEAN RISK MANAGEMENT FIRM DATA4S
 Release date: 19 Nov 2004

'By consolidating two leading European players, this acquisition will accelerate Norkom's position as the number one European player in the risk management, fraud and compliance marketplace.
..
The combined client list will include many of the top European financial service institutions including Allied Irish Bank, Fortis Bank, HSBC, KBC Bank, National Australia Bank Europe, Rabobank and Visa EU.

...
 In addition, there is a growing demand for multi-channel fraud detection systems, covering credit card, debit card. ATM, check, deposit and Internet banking fraud. DATA4s significantly strengthe ns Norkom's offering and provides enhanced and additional expertise in support of the plans for even greater expansion in this accelerating market.'
...
About Norkom Technologies
Norkom Technologies is a European leader in Risk Management and Compliance software to detect and combat different types of financial crime for the Retail Banking, Insurance and Investment Banking sector. Based on Norkom's award winning technology platform, Alchemist(tm), application areas include anti money laundering, cheque and debit/credit card fraud, identity theft, and the illegal trans fer of funds to named individuals and organisations. Alchemist uses intelligence driven transaction monitoring techniques and advanced analytical capabilities to generate insights on customer and channel behavior. It includes full response management capability based on a sophisticated decisioning environment, thus providing a link between Analysis and Action(tm). Founded in 1998, Norkom has operations in Ireland & the UK, continental Europe, USA and Canada. Customers include HSBC Bank, Bank of Montreal Financial Group, Allied Irish Bank and other global financial institutions and organizations.

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http://events.sifma.org/2009/347/event.aspx?id=7706



Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

Online TahoeBlue

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Re: Drug Money Laundering under Government Cover
« Reply #7 on: March 11, 2009, 03:02:30 AM »
Quote
The Treasury has been working with the Society for Worldwide Interbank Financial Telecommunications, or SWIFT, the bank cooperative that will develop a new payment message format.
...
A press release from the Clearing House Association said the new message format "would include more detailed information about those conducting wire transfers in certain instances" without providing any detail.

OK. so what about this "New message format"?

http://www.sibosonline.com/fullstory.asp?id=19153
Fedwire and Chips to support new Swift cover payment messages
20 October 2008

In anticipation of the November 2009 deadline for supporting Swift's new enhanced message format for cover payments, the Federal Reserve Banks (FRBs) and The Clearing House have completed and distributed specifications for banks transmitting cover payments through the Fedwire Funds Service and Chips, the US wire transfer systems.

Cover payments are used for cross-border transactions where the originating and beneficiary banks do not have a direct relationship or specific correspondent bank and instead rely upon a chain of intermediate banks to facilitate payment.

This process has come under scrutiny from international regulators for its lack of transparency and propensity for facilitating money laundering. In order to improve the transparency of the cover payments process, Swift has issued a new messaging standard, MT 202 COV, that will go live in November 2009. The new format will include originator and beneficiary details and will make it possible for an originating bank to send a single aggregate cover payment containing payment instructions for multiple underlying individual transactions.

"The Federal Reserve Banks and The Clearing House have been working collaboratively with banks and other high value payment system operators around the world to create specifications for Fedwire and Chips that improve transparency, maintain Swift compatibility, and minimise system changes for financial institutions," said Lauren Hargraves, senior vice president of the Federal Reserve Banks' Wholesale Product Office. "Even though the changes take effect a year from now, it's prudent for banks to begin plans to adapt their internal systems."

Banks are expected to start testing the new format in the May/June 2009 timeframe in anticipation of the November 2009 deadline.

"We have worked very successfully with banks and other payment system operators to develop specifications for each system," said Hank Farrar, Senior Vice President of The Clearing House, responsible for Chips. "The implementation of the new cover payment message format is the first of two planned enhancements for US dollar wire transfer systems. After cover payments, we will focus on enabling our systems to carry remittance information with wire payments."

Both the Federal Reserve Banks and The Clearing House have been working with banks and operators to develop specifications to permit business remittance information to be included with Fedwire and Chips payments by the fourth quarter of 2010.

At Sibos in Vienna last month the Payments Market Practice Group (PMPG) warned that changes required in processes at banks as a result of MT 202 COV could mean a one-day delay in payments.

"It is not just a standards initiative," said Christian Westerhaus, managing director, Deutsche Bank. "Banks will have to think about the whole process - the business, legal and compliance elements as well as the technical and operational details."


http://www.frbservices.org/communications/fedwire/051308.html
Q&A About New Formats For Cover Payments And Business Remittance Payments
General Questions

What is the goal of this initiative?

Over the past two years, The Clearing House and the Federal Reserve Banks, the operators of the two U.S. dollar wire payment systems (CHIPS and the Fedwire® Funds Service), have been working closely together on issues that effect financial institutions, including cover payments and business to business ("B2B") remittance information. Although the two wire payment systems are not identical and have some basic differences in functionality, the proposed solutions for cover payments and B2B remittance information were designed collaboratively to minimize the implementation effort for financial institutions and still provide the necessary capabilities to comply with regulatory requirements and meet the needs of corporate customers.

Cover payments
1) Why is this message format enhancement being made?

In April 2007, the Wolfsberg Group (a group of global banks) and The Clearing House (TCH) published a set of principles (Off-site Link) to improve transparency of international transactions, including cover payments.

Additionally, the SWIFT community recently voted to enhance certain financial messages used to facilitate cover payments, effective November 2009 (Off-site Link). The Federal Reserve Banks (FRBs) and TCH, operators of the U.S. dollar wire transfer systems, have developed a strategy to ensure that the transparency of cover payments can be maintained when settled on their respective wire transfer systems, the Fedwire® Funds Service and CHIPS. This message format change is a component of that strategy.

2) How was the cover payment message format selected?

A range of options were considered for addressing the cover payment issue on the U.S. dollar wire transfer systems. The chosen solution reflects preferences expressed by industry participants through a recent formal survey conducted by the FRBs.

3) How will transparency be achieved for cover payments settled in U.S. dollars, and when will the enhanced cover payment message format be implemented on the U.S. dollar wire transfer systems?

Unlike certain SWIFT messages used for cover payments, currently the comparable U.S. dollar wire transfer system messages can carry customer details sufficient to achieve the desired transparency. However, at this time, these messages do not clearly denote that a particular message is related to a cover payment. In addition, cover payment transparency will need to be achieved when U.S. dollar correspondent banks receive incoming extended character SWIFT cover payment messages.

SWIFT will be implementing an extended character (10,000 character) cover payment message in November 2009. SWIFT elected to implement this message size to provide sufficient space in a single message to identify customer details for multiple underlying transactions. U.S. dollar correspondent banks receiving extended character SWIFT messages between November 2009 and approximately fourth quarter 2010 will need to split those into individual underlying transactions to be settled on the U.S. dollar wire transfer systems.

The FRBs and TCH will also recommend a market convention to be used between November 2009 and fourth quarter 2010 to identify certain Fedwire Funds Service and CHIPS messages related to cover payments, so that receiving banks can implement the appropriate internal accounting treatment for these messages.

With this strategy, market participants will be able to achieve the full transparency required by November 2009.

By approximately fourth quarter, 2010, additional enhancements will be available to accommodate multiple underlying transactions within one message.

4) What are the key features of the enhanced cover payment messages to be implemented by the fourth quarter of 2010?

The enhanced cover payment messages on the U.S. dollar wire transfer systems will be designed explicitly to match the data elements and extended character lengths offered in the new SWIFT cover payment messages. This will eliminate the need to split up extended character SWIFT messages when settling the underlying payments on the U.S. dollar wire transfer systems.

Business Remittance Information
5) Why is this enhancement to the payment message format change being made?

In October 2006, the FRBs and TCH published research (PDF) on business to business wire transfer payments. Conclusions of that research were:

Corporations want more structured remittance information in the wire transfer payment message to explain the purpose of the payment.
Having this information in a standard format would facilitate straight through processing.
Including this information in a wire transfer message would be valuable to corporations
Enhancing U.S. dollar wire transfer systems in this way would help maintain existing volume on the wire transfer systems and may lead to growth in wire transfer payments, to the extent that this becomes part of a strategy for corporations to move certain high value / urgent checks to electronic payment methods.

6) How were the business remittance information data elements selected?

The chosen data elements culminate more than two years of collaboration among the FRBs, TCH, and other constituencies in the U.S. dollar wire transfer community, including banks, corporations, and software vendors. The decision to implement this enhanced message format is consistent with preferences expressed through a recent FRB survey.

7) When will the enhanced payment message that includes business remittance information be implemented on the U.S. dollar wire transfer systems?

It is anticipated that both the FRBs and TCH will make this functionality available by the fourth quarter 2010.

8) What are the key features of the enhanced business remittance information message format?

The enhanced message will include all the necessary data elements to route and settle the payment plus a standard set of structured data elements designed to explain the purpose of the payment. The remittance information data elements have been explicitly selected so that they can be translated to or from a variety of popular remittance information formats including the EDI STP 820, the globally compatible XML ISO 20022, and certain proprietary / human readable formats.

The enhanced message can carry details for as many invoices as will fit in 9,000 characters of space dedicated to remittance information. It is expected that this will support approximately 25 to 30 invoices in a single wire transfer payment.
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

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Re: Drug Money Laundering under Government Cover
« Reply #8 on: March 11, 2009, 03:40:18 AM »
The Cross-Border Payments - Humm
http://www.epaynetwork.com/cms/resources/whitePapers/industryWhitePapers/002765.pdf

The Inefficiencies of Cross-Border Payments: How Current Forces Are Shaping the Future

Visa commissioned Dr. Yoon S. Park, an expert on global financial markets and Professor of International Finance at the School of Business at George Washington University, to examine the current challenges of the cross-border payments process and how a combination of forces are influencing the future of payment processing.

Cross-border trade is growing rapidly as more companies source goods and services globally.  International trade doubled over the past decade to $10.5 trillion in 2005. Most cross-border trade payments are handled through correspondent banking relationships, whereby a series of banks and domestic payment systems are typically linked together to move funds.

While volume continues to grow and migrate to open account terms (supplier credit extended to buyer at time of sale), pressure is being exerted on both banks and payment systems to improve the cross-border payment process. The paper, “The inefficiencies of cross-border payments: How current forces are shaping the future,” looks at the challenges of the current cross-border payments process and how a combination of forces are influencing its future.

Cross-border payment challenges
Cross-border payments are intrinsically inefficient because there is not one single ubiquitous global payment system.

There are three challenges that must be overcome in order to improve the cross-border process:

1. Most payment systems are based on local laws and practices within existing domestic banking and financial structures.
2. Lack of a common global standard and variations between systems have reduced the ability of both bank and corporate treasury/enterprise systems to seamlessly pass data between each other.
3. Government regulations are changing how payments are made. Payments are subject to domestic regulations which compound the challenges of cross-border payments because often rules vary between an originating and receiving country.

Trends shaping the future
A number of forces are shaping the cross-border payment landscape:
1. Transnational payment systems – Emerging transnational systems are reducing the reliance on correspondent networks for payments and standardizing data formats.
2. Government-led initiatives and mandates – Government-led initiatives are influencing how payments are made and what fees can be charged.
3. Risk and liquidity management – Payment systems are becoming more efficient at managing credit risk, liquidity needs, and funding costs.
4. Multinational banks and corporations – Multinational banks are achieving processing economies of scale while unintentionally concentrating credit risk during settlement.
5. Operational efficiencies through outsourcing – Banks are bundling payments and outsourcing operations to other banks and third-party processors. This is driving process efficiencies, but further disintermediating financial institutions from the payment process and the financial supply chain.

Today, cross-border payments are slow, inefficient and costly for banks and businesses. Increase in global trade and improvements in physical supply chain efficiencies are creating demand for process improvements. Improvement in the efficiency and effectiveness of cross-border payments is likely, but all stakeholders are being required to increase investments to change the processes and systems of corporates, banks and payment systems.
...
2. Lack of common message standardsBusinesses also face the challenge of removing paper and manual processes by introducing straight-through processing (STP) as much as possible. This requires payment instructions to be generated electronically as part of the business process, passed securely, efficiently and cost-effectively to their banks, and matched and reconciled automatically via a universal reference number within invoicing, accounts payable, accounts receivable and other systems.

However, according to a recent wire transfer survey only 15 percent of respondents report that their wires always come with sufficient remittance information (for example, customer account number and invoice number, to apply the payment correctly). The typical business must research 17 percent of the wires that it receives at the average cost of $35 per wire and 30 minutes of time. Resistance to the adoption of standards arises from the large costs associated with enhancing internal systems and procedures relative to the small volume of international payments. Unlike domestic standards, cross-border message standards have to support multiple domestic rules and regulations before they can be adopted within a market. In addition the value of a standard is realized only when the specification is widely accepted. As a result, banks may be reluctant to make sizable investments to support such standards if they are uncertain that other banks are making similar investments to upgrade their systems.

Trend 1: Transnational payment systems are growing

While once there were only domestic payment channels in each country, we have witnessed the emergence of transnational systems such as TARGET, CLS (Continuous Linked Settlement), the Federal Reserve’s International ACH Project, known as FedACH International and the proposed pan-European automated clearinghouse known as PE-ACH. On the other end of the spectrum, card systems such as those operated by Visa and MasterCard are truly global in scope and have been expanding from consumer based transactions into commercial payments for more than a decade.

Transnational systems have traditionally focused on providing payments within a region or to a small number of countries and usually support a single currency. Although none of these systems are yet global in scope, it is likely they will continue to expand their coverage to additional countries and currencies. Networks such as Visa and MasterCard are examples of global payment systems that also support multiple currencies, though they are primarily used for retail payments and ad hoc/T&E commercial transactions.

Recently, in countries like Switzerland and Hong Kong13, new arrangements have been developed for the settlement of local payments in foreign currency. These arrangements neither fit perfectly in the traditional category of “correspondent banking” or in that of “payment systems”. The main common characteristic of these arrangements or systems is that they do not settle in central bank money but across accounts held with a commercial bank and that they are based on clearly defined and transparent rules for payment activities. Compared to traditional correspondent banking, these new solutions are standardized and settle payments in real time with continuous finality.

In 1999, Swiss financial institutions established a cross-border solution in order to facilitate their cash management in euros. This solution involves a fully licensed bank in Germany, Swiss Euro Clearing Bank (SECB). To process euro transactions, SECB uses the euroSIC platform in Switzerland, which is often referred to as the euro payment system of Switzerland. EuroSIC is a replication of the Swiss franc RTGS system, Swiss Interbank Clearing (SIC). SIC and euroSIC are operated by Swiss Interbank Clearing AG. SECB is the settlement institution and shares the role of settlement agent with the operator SIC AG. SECB is also the liquidity provider in euroSIC. It extends intraday and overnight credit to the participants of euroSIC against collateral. SECB provides a link to the euro area, as it is a direct participant in RTGSPLUS through which access to TARGET is established.

In Hong Kong, the U.S. dollar and euro clearing systems, USD CHATS (Clearing House Automated Transfer System) and Euro CHATS, were introduced in 2000 and 2003, respectively. They enhance the safety and efficiency of settling these foreign currencies in the local time zone. These systems are almost exact replicas of the Hong Kong dollar RTGS system (HKD CHATS). The key functions of both systems are to enable settlement of foreign exchange transactions between HK dollars, US dollars and euros in their respective currencies through a linkage with the Central Moneymarkets Unit (CMU) in Hong Kong.

Payment system types

To date international payments have been, to a large extent, based on correspondent bank operations. The traditional approach to processing payments was end-of-day net batch processing. Today, batch systems operate with settlement cycles as short as every 30 minutes, known as deferred net settlement systems (DNS). Thanks to real-time processing capabilities, however, payments can now be processed individually and immediately, with such a trend expanding from large-value transfers to retail payments in response to customer service requirements and the growth of e-commerce. Real-time payment systems fall into two groups: the real-time gross settlement systems (RTGS) of central banks and continuous net settlement systems (CNS).

A survey of major systems facilitating cross-border payments (some of the big ones)

CHAPS (Clearing House Automated Payment System): CHAPS, established in 1984, is the United Kingdom’s high-value payment system, consisting of two systems: CHAPS Sterling and CHAPS Euro, which provide settlement facilities for sterling and euro payments, respectively. Over a dozen large banks and building societies are “direct” or settlement members, while there are also over 400 “indirect” members – typically smaller banks and building societies – who have access to the system through a settlement member.

CHIPS (Clearing House Interbank Payment System): CHIPS is a bank-owned, privately operated, real-time, multilateral electronic payments system that transfers funds and settles transactions in U.S. dollars. CHIPS began operations in 1970 with 9 participating banks and, as of mid 2006, it processes about 300,000 payments a day with an average daily amount of $1.5 trillion. It currently has 46 participants from 19 countries around the world, including large U.S. banks and U.S. branches of foreign banks. The payments transferred over CHIPS are often related to international interbank transactions, including the payments resulting from foreign currency transactions (such as spot and currency swap contracts) and Euro placements and returns.

CLS (Continuous Linked Settlement): The CLS system is the private sector response to a G-10 strategy to reduce foreign exchange settlement risk. CLS was founded in 1997 to create the first global settlement system, eliminating settlement risk in the foreign exchange market. Formed in response to regulatory concern related to the temporal and systemic risks (Herstatt risk) associated with foreign exchange transactions, CLS simultaneously settles both sides of foreign exchange trades using a multi-currency payment-versus-payment (PVP) mechanism. CLS is a unique real-time process enabling simultaneous foreign exchange settlement across the globe, eliminating the settlement risk caused by delays arising from time-zone differences. CLS settles well over $1 trillion per day, accounting for a substantial majority of cross-currency transactions across the globe.

EURO1: a private sector-owned high-value payment system, operated by the EBA Clearing Company for cross-border and domestic transactions in euro between banks operating in the European Union, and it is the largest of Europe’s four large-value, net settlement systems, processing on average 170,000 payments a day with a total value of about €170 billion. Launched in 1998, EURO1 was developed to provide an efficient, secure and cost-effective infrastructure for large-value payments in the new single currency environment of the EU. EURO1 is based on state-of-art messaging infrastructure and computing facilities supplied by SWIFT.

FedACH International Services: This international gateway arrangement service is owned and operated by the Federal Reserve System. Currently, the Federal Reserve Banks offer a suite of FedACH International Services as part of FedACH Services and provide U.S.- originating depository financial institutions with the ability to send international non-time-critical payments via the same process used to send domestic transactions for many decades. FedACH International Services offer an integrated, uncomplicated method to ensure straight-through processing (STP) of cross-border transactions, using NACHA formats that are supported by most software vendors.

Fedwire (Federal Reserve Wire Network): This is a high-speed electronic network through which the U.S. Federal Reserve provides the Fedwire Funds Service, the Fedwire Securities Service, and the National Settlement Service. The Fedwire Funds Service provides an RTGS system in which more than 9,500 participants initiate funds transfers that are immediate, final, and irrevocable when processed.

RTGSPLUS: is the German Bundesbank’s new liquidity-saving RTGS, which became operational in November 2001. It combines the risk-reducing benefits of gross settlement of the former German RTGS system known as the Euro Link System (ELS) with the advantages of liquidity-saving processing of the former hybrid system known as Euro Access Frankfurt (EAF).

SWIFT (Society for Worldwide Interbank Financial Telecommunications): SWIFT is an industry-owned limited liability cooperative that supplies secure messaging services and interface software for financial transactions to more than 7,650 banks, securities brokers and investment managers in more than 200 countries.
SWIFT payment messages are processed by the Financial Information Network (FIN), which operates on a secure IP network called SWIFTNet. SWIFT is integrating into the ACH market segment as a payment service provider via its FileAct messaging service. ACH networks such as the EBA Clearing Company and the South African Automated Clearing Bureau are already using SWIFT’s messaging platform.

STEPS (Straight Through Euro Payment System): The STEPS program was launched by the Euro Banking Association (EBA) to offer a full range of euro payments across Europe. STEPS has evolved into two systems aimed at accommodating a broad base of processing needs within the European Union: STEP1 (a pan-European system designed to process single cross-border, low-value retail payments) and STEP2 (a pan-European ACH for bulk/high volume, low-value, cross-border and domestic interbank payments).

STEP2: a pan-European ACH solution, is a joint venture between the EBA and Italy’s ACH operator SIA. STEP2 processes high-volume, commercial and retail payment orders sent to the system via files through a secure network. Characteristics of payment orders that are processed via STEP2 are commercial and retail transfers in euro that are formatted to agreed technical standards. Accessible through SWIFTNet, STEP2 offers payment processing and settlement in euro.

TARGET (Trans-European Automated Real-time Gross Settlement Express Transfer): The Eurosystem, which comprises the European Central Bank (ECB) and the national central banks (NCBs) of the 12 EU member states which have adopted the euro, has created TARGET for large-value payments in euro. The TARGET system is a “system of systems” composed of the national payment systems of 16 of 25 countries that are currently members of the EU, the ECB payment mechanism (EPM) and an interlinking mechanism that enables the processing of payments between the linked systems.

TARGET2: The current structure of TARGET was decided on in 1994 and was based on the principles of minimum harmonization and interconnection of existing infrastructures. This was the best way of ensuring that the system would be operational from the very start of the European Economic and Monetary Union (EMU) in 1999. TARGET2 is an enhanced version of the current TARGET incorporating technical consolidation, a single system-wide pricing structure for domestic and cross-border payments, a harmonized service level, and the system-wide pooling of available intraday liquidity. The go-live date for TARGET2 is set for November 19, 2007, with gradual migration to the new system by the member states in four waves. All central banks participating in TARGET2, together with their national banking communities, are expected to be using the new system by May 2008.

Visa: is a private, membership association jointly owned by more than 20,000 member financial institutions around the world. Visa develops common standards and specifications to facilitate commerce and provide member financial institutions with the global payment platform to support transactions on 1.46 billion cards that generate more than $4.3 trillion in global transactions in over 160 countries.17


Selected government entities influencing cross-border payments

Bank for International Settlements: Based in Basel, Switzerland, the Bank for International Settlements was established by the Hague agreement of 1930 as an international organization of central banks. The Bank for International Settlements seeks to make monetary policy more predictable and transparent among its 55 member central banks. While monetary policy is determined by each sovereign nation, it is subject to central and private banking scrutiny and potentially to speculation that affects foreign exchange rates and especially the fate of export economies. Banking services are provided, but only to central banks or to international organizations like itself. Basel II which began in 2001 focuses on minimum capital requirements, supervisory review and market discipline to promote greater stability in the financial system.

FATF (Financial Action Task Force): FATF on Money Laundering is a 33-member organization established by the G-7 Summit in Paris in 1989 with primary responsibility for developing worldwide standards for AML and CFT. It works in close cooperation with other key international organizations, including the IMF, the World Bank, the United Nations, Bank for International Settlements, and FATF-style regional bodies (FSRBs), most of which participate in its meetings as observers. FSRBs include the Asia Pacific Group on Money Laundering (APG), the Caribbean Financial Action Task Force, the Offshore Group of Banking Supervisors, and the Organization of American States.

FinCEN (Financial Crimes Enforcement Network): FinCEN’s mission is to safeguard the financial system from the abuses of financial crime, including terrorist financing, money laundering, and other illicit activities. It administers the Bank Secrecy Act of 1970, which authorizes the reporting and recordkeeping obligations with respect to financial transactions for law enforcement purposes. Since its creation in 1990, FinCEN has worked to maximize information sharing among law enforcement agencies and its other partners in the regulatory and financial communities to combat illicit finance. As the United States’ financial intelligence unit (FIU), FinCEN links to a network of over a hundred similar FIUs around the world, sharing information to pursue investigations.
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

Offline 1776blues

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Re: Drug Money Laundering under Government Cover
« Reply #9 on: March 11, 2009, 10:12:16 AM »
I've always maintained if you can't stop the suits and ties you can't stop Jack. We know why though, many people have their hands in the cookie jar and while they completely ruin the lives of the people arrested for possession or under the influence they live the life of riley however, these scumbags will pay for all their sins and if caught before they meet our maker then they should spend life behind bars.

These people would steal from their own Grandma knowing she didn't have much and they are proud of it!
"That whenever any Form of Government becomes destructive of these ends, it

is the Right of the People to alter or to abolish it, and to institute new

Government, laying its foundation on such principles and organizing its

powers in such form, as to them shall seem most likely to effect the

Online TahoeBlue

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Re: Drug Money Laundering under Government Cover
« Reply #10 on: March 11, 2009, 05:02:49 PM »
Let's re-cap what has been discovered in the last few posts...

1. Britain/ G20 is under pressure for greater transparancy of  money being held in Tax havens. One can also think this as multi-national corporate "Skim" (you don't think they report all there income?). This is also where alot of "War booty" ends up. This is also where bribes are paid and "stored".

http://forum.prisonplanet.com/index.php?topic=89688.msg524801#msg524801
UK HAS 13 TRILLION IN UNTAXED WEALTH!

"We fully support the legislation … on offshore tax centres, and we look forward to working with you as part of the broader effort to address international tax evasion and close the tax gap," Geithner told the House ways and means committee late on Tuesday.

Key measures in the new legislation, now likely to be in force within 12 months, include revealing the beneficiaries of secretive trusts and identifying "offshore secrecy jurisdictions" that "unreasonably restrict US tax authorities from obtaining needed information" as well as severely increasing penalties against tax evaders and closing numerous loopholes.

http://forum.prisonplanet.com/index.php?topic=89688.msg524882#msg524882

Following the G20 preparatory summit in Berlin last week, officials are preparing a new blacklist of uncooperative havens. Other leading centres of secretive offshore activity including Liechtenstein and Panama are among more than 30 nations that have failed to sign agreements to hand over information about corporations and individuals who take advantage of their secrecy and their low taxes.

Officials are working on a plan for international financial institutions to pull their investments out of the blacklisted havens. Brown is due in Washington on Tuesday for talks with President Barack Obama.

The G20 is believed to be drawing up its blacklist from three overlapping groups of havens: those which still have no double taxation conventions, which allow nations to swap information on taxpayers in each other's jurisdiction; those which have refused to accept the idea of new Tax Information Exchange Agreements (TIEAs), which allow one nation to require another to dig out extra information on a suspect; and those which agreed in principle to TIEAs but have failed to sign them.



http://forum.prisonplanet.com/index.php?topic=89688.msg531534#msg531534
"About £8.2 trillion of private wealth currently sits in havens, undeclared by its owners in their country of residence. That represents £180bn in lost tax - more than double the world's global aid budget. Tax avoidance costs the UK treasury £25bn a year"

http://forum.prisonplanet.com/index.php?topic=89688.msg531580#msg531580

They are in such a Conundrum since the NWO economic system depends upon bribery and money laundering. They tried to contain the little fish and cowboy's with SOX  - AML and KnowYourCustomer and then the BAE/Rigg's scandal came out into the open.  They are desperate to find a legal way to enforce "Selective Enforcement" so they don't step on the wrong toes or expose the important operations.... like for example the Carlyle Group

2. So they must come up with a "new" system that takes into account this "government/corporate" covered laundering.

Enter the "new" SWIFT message format:

"A press release from the Clearing House Association said the new message format "would include more detailed information about those conducting wire transfers in certain instances" without providing any detail."

In anticipation of the November 2009 deadline for supporting Swift's new enhanced message format for cover payments, the Federal Reserve Banks (FRBs) and The Clearing House have completed and distributed specifications for banks transmitting cover payments through the Fedwire Funds Service and Chips, the US wire transfer systems.

Enter Norkom Tech to be used by the major's to monitor wire transfers:

Norkom Technologies is a leading player in the financial crime and compliance market sector. Our software suite is deployed in more than 100 countries across four continents and monitors millions of transactions a day for global financial services clients.

Customers KBC, Fortis Bank, HSBC, Credit Agricole, The Depository Trust & Clearing Corporation, Western Union, Standard Chartered Bank, AXA, Visa, Euroclear, ...

 multi-channel fraud detection systems, covering credit card, debit card. ATM, check, deposit and Internet banking fraud.

Alchemist uses intelligence driven transaction monitoring techniques and advanced analytical capabilities to generate insights on customer and channel behavior. It includes full response management capability based on a sophisticated decisioning environment, thus providing a link between Analysis and Action(tm).

Norkom's enterprise-wide Anti-Money Laundering and Watch List Management software will monitor Banco Santander transactions across all customers and accounts to detect, investigate, manage and report potentially suspicious behavior. The bank will be automatically alerted if any individual or entity attempting to transact with it is listed on any of the numerous and diverse watch lists issued by regulators.

Then we we have a problem that begs a solution: Cross-border payment challenges

Cross-border payments are intrinsically inefficient because there is not one single ubiquitous global payment system.

So now we have emerging a "new" "global" wire message standard required of all the financial services to use and connected to a single source enterprise-wide Anti-Money Laundering and Watch List Management software (Norkom). 

So as long as the "regulators" play along, government/corporate laundering may continue unabated ...

Scenario:

We are in a difficult time window since the new system won't be up until Nov 2009 and U.S. feds are looking for money NOW. Will the Brit's/Dutch be able to put the americans off for another nine months?
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

Offline Revolt426

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Re: Drug Money Laundering under Government Cover
« Reply #11 on: March 11, 2009, 05:18:15 PM »
I dont think they will be able to hold it off for 1 month let alone 9 months. The economy is in a nose dive and even Volcker has changed his tune (Proposing the re-enactment of Glass/Steagall)

The press has identified Gordon Browns proposals for selective enforcement on tax havens and various individuals in the Obama Admin want to go after the city of LONDON itself, Along with ALL tax havens.

the UBS raid is currently gaining traction, if one goes down the rest will follow.

If UBS private tax evasion accounts are brought into the open it by default exposes the people who have dual citizenship in the US and other countries,  like George Soros and Felix Rohatyn, engaged in Drug Trade / Bribery of US Politicians.

This is where you see a big fight between the US and the UK at the G-20 summit, even dis-regarding the fact that Obama refused to endorse Browns "Global New Deal".

I know people are going to be shocked but something is going to happen one way or the other
"Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate … It will purge the rottenness out of the system..." - Andrew Mellon, Secretary of Treasury, 1929.

Online TahoeBlue

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Re: Drug Money Laundering under Government Cover
« Reply #12 on: March 11, 2009, 08:18:47 PM »
Let's review the country/banks that are "tax havens" , they would be represented by the OGBS and the APG. Gee, looks alot like the old East India Company Network....

It's a war on "terrorist financing" and "tax havens" which must be used to create a NWO of finance....


OGBS - Offshore Group of Banking Systems
Objective: to participate with relevant international organisations in setting and promoting the implementation of international standards for cross-border banking supervision, and for combating money laundering/terrorist financing;



Members
Aruba
Bahamas
Barbados
Bermuda    
British Virgin Islands    
Cayman Islands    
Guernsey    
Isle of Man    
Jersey    
Labuan    
Macau, China  
Mauritius    
Netherlands Antilles    
Panama    
Samoa    
Vanuatu  

 Observers:

Eastern Caribbean Central Bank  
Antigua-Barbuda  
Cook Islands  

http://www.fatf-gafi.org/document/19/0,3343,en_32250379_32236869_34354899_1_1_1_1,00.html

Asia Pacific Group (APG) Members

Afghanistan
Australia
Bangladesh
Brunei Darussalam
Cambodia
Canada
Chinese Taipei
Cook Islands
Fiji
Hong Kong, China
India
Indonesia
Japan
Lao People's Democratic Republic
Macao, China
Malaysia
Maldives
Marshall Islands (The)
Mongolia
Myanmar
Nauru
Nepal
New Zealand
Niue
Pakistan
Palau
Philippines (The)
Republic of Korea (South Korea)
Samoa
Singapore
Solomon Islands
Sri Lanka
Thailand
Timor Leste
Tonga
United States of America
Vanuatu
Vietnam

Observer Jurisdictions

France
Kiribati
Papua New Guinea
United Kingdom

Observer Organisations

Asian Development Bank (ADB)
Asia-Pacific Economic Cooperation (APEC)
Association of South East Asian Nations (ASEAN)
Caribbean Financial Action Task Force (CFATF)
Commonwealth Secretariat
Egmont Group of Financial Intelligence Units
FATF
International Monetary Fund (IMF)
Interpol
Offshore Group of Banking Supervisors (OGBS)
Pacific Financial Technical Assistance Centre (PFTAC)
Pacific Islands Forum Secretariat (PIFS)
United Nations Office on Drugs and Crime (UNODC)
World Bank
World Customs Organisation (WCO)
 

Background

The purpose of the Asia/Pacific Group on Money Laundering (APG) is to ensure the adoption, implementation and enforcement of internationally accepted anti-money laundering and counter-terrorist financing standards as set out in the FATF Forty Recommendations and FATF Eight Special Recommendations. The effort includes assisting countries and territories of the region in enacting laws to deal with the proceeds of crime, mutual legal assistance, confiscation, forfeiture and extradition; providing guidance in setting up systems for reporting and investigating suspicious transactions and helping in the establishment of financial intelligence units. The APG also enables regional factors to be taken into account in the implementation of anti-money laundering measures.

The origins of the APG go back to "awareness raising" activities undertaken by the FATF in the early 1990s as part of its strategy to encourage adoption of money laundering counter-measures throughout the world. In order to achieve more concrete results, Australia agreed to set up a Secretariat for the purpose of obtaining regional commitment and establishing a regional FATF-style body with practical objectives. Subsequently, an agreement was reached in Bangkok in 1997 which created the APG. The first meeting was held in Tokyo in 1998 and then annually thereafter.  Following the events of 11 September 2001, the APG expanded its scope to include the countering of terrorist financing.

The APG conducts mutual evaluations of its members and holds a periodic workshop on money laundering methods and trends.   Its work mandate has been set out in a document containing specific terms of reference for the group. The APG is supported by a Secretariat, which serves as the focal point for its activities.

The APG became an Associate Member of the FATF in 2006.

http://www.guardian.co.uk/business/2009/mar/10/jersey-tax-evasion-data-treasury

Jersey agrees to pass tax evasion data to UK
David Leigh
The Guardian, Tuesday 10 March 2009

Terry Le Sueur, chief minister of the Channel islands tax haven of Jersey, is due in London today to sign a novel agreement which will share information about offshore tax dodging.

Treasury sources said yesterday the deal with Jersey had been "a long time coming", but was a result of the changed international climate.

Gordon Brown and Barack Obama have promised to crack down on tax havens, many of which are British or ex-British territories. The OECD is also working on a fresh blacklist of uncooperative countries, and next month's G20 meeting in London is expected to see strenuous efforts to pillory the alleged worst culprits, such as Switzerland.

Jersey will hope to avoid sharing that fate. The UK has been trying to persuade it to sign a deal for more than four years. Stephen Timms, the Treasury minister, who has negotiated the tax information exchange agreement (TIEA), has benefited from the international hostility to tax havens following the global financial crash. In the boom years, many banks, hedge funds and wealthy individuals avoided tax bills by using havens and offshore banks to accumulate assets.

Jersey has signed two other such agreements with the US and the Netherlands. In 2007, members of the island's regime complained publicly they might lose business as a result, particularly to Switzerland, where tax evasion by foreigners has not been regarded as a crime.

Following the G20 preparatory summit in Berlin last week, officials are drawing up a list of uncooperative havens. Other centres of secretive offshore activity, including Liechtenstein and Panama, are among more than 30 countries that have failed to sign agreements to hand over information.

Earlier lists which were prepared by the OECD merely "named and shamed". Now the G20 plans to promote a series of sanctions designed to deprive them of billions of dollars of business.

Sanctions discussed include refusing to allow payments to a blacklisted haven to be deducted from taxable income. This would hit big corporations and banks who channel millions of pounds out of the taxman's reach by paying royalties, management fees, dividends and insurance premiums to their own offshore subsidiaries. Officials are working on a plan for international financial institutions to pull their investments out of the blacklisted havens.

The G20 is believed to be drawing up its list from three overlapping groups of havens: those that have no double taxation conventions, which allow countries to swap information on taxpayers; those that have refused to accept the idea of new tax TIEAs; and those which agreed in principle to TIEAs but have failed to sign them. Campaigners from the Tax Justice Network estimate that some $255bn (£185bn) a year of revenues are lost globally due to tax havens.
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

Online TahoeBlue

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Re: Drug Money Laundering under Government Cover
« Reply #13 on: March 11, 2009, 09:39:48 PM »
Some of the "30" countries are secret.....

I now have:

Andorra, The Principality of Liechtenstein,  The Principality of Monaco,  Switzerland, Luxembourg, Austria, Singapore and Hong Kong 

We must make lists: non-cooporative countries lists:

http://www.fatf-gafi.org/document/4/0,2340,en_32250379_32236992_33916420_1_1_1_1,00.html
FATF - As of 13 October 2006, there are no Non-Cooperative Countries and Territories

http://en.wikipedia.org/wiki/Financial_Action_Task_Force_on_Money_Laundering#List_of_Non-Cooperative_Countries_or_Territories

The effect of the FATF Blacklist has been significant, and arguably has proven more important in international efforts against money laundering than has the FATF Recommendations. While, under international law, the FATF Blacklist carries with it no formal sanction, in reality, a jurisdiction placed on the FATF Blacklist often finds itself under intense financial pressure. As a result of the FATF 40+8 Recommendations (among other initiatives), most countries now require their banks to report certain suspicious financial activities to the appropriate financial regulators and law enforcement authorities. (In the United States, these are called Suspicious Activity Reports or S.A.R.'s.) Most larger countries with significant financial centers consider transactions coming from or transferring to a jurisdiction on the FATF Blacklist to be a suspicious activity, which automatically triggers closer regulatory scrutiny (and considerably more paperwork on the bank's part). Because of this, many major financial institutions will not conduct business with counterparts based in NCCTs. Since many of the countries that FATF originally listed as NCCTs have major financial industries (i.e., the Bahamas, Cayman Islands, Liechtenstein), such de facto boycotts could have a significant effect on a country's economy (or at least a politically powerful sector of the economy).


http://www.oecd.org/document/57/0,3343,en_2649_33745_30578809_1_1_1_1,00.html
35 Jurisdictions have made commitments to transparency and effective exchange of information and are considered co-operative jurisdictions by the OECD's Committee on Fiscal Affairs.

Although a small number of jurisdictions identified as tax havens in June 2000 have not yet made commitments, the OECD would welcome continued dialogue with these jurisdictions and the prospect of their future commitment to transparency and effective exchange of information.

The following jurisdictions, which have not yet made commitments to transparency and effective exchange of information, have been identified by the OECD's Committee on Fiscal Affairs as unco-operative tax havens.

Andorra
The Principality of Liechtenstein
The Principality of Monaco

http://www.iht.com/articles/2009/03/11/business/tax.php

Tax havens draw heightened scrutiny
By Matthew Saltmarsh Published: March 11, 2009

PARIS: As the Group of 20 leading developed and emerging economies prepare for a meeting in early April to try to improve financial rules and restart growth, pressure is building on tax havens to do their part by divulging more information on potential tax evaders.

On Wednesday, the French newspaper La Tribune reported that the Organization for Economic Cooperation and Development had added Switzerland, Luxembourg, Austria, Singapore and Hong Kong to a list of uncooperative tax havens, which already includes such well-established havens as Andorra, Liechtenstein and Monaco.

Nicholas Bray, a spokesman for the OECD in Paris, confirmed that the organization had been preparing information on tax havens for the G-20 meeting in London on April 2 at the request of the French and German governments. They see this issue as a prime way to claw back lost revenue and bolster their budgets through the downturn.

The OECD has "provided information to the G-20, taking the form of a list," Bray said. "This is not an OECD blacklist. It's up to the G-20 to decide what to with it."

The OECD, which groups 30 of the biggest industrialized economies, has been working for at least 12 years as an advisory body on taxation issues. It has a number of agreements on the matter signed by most OECD members — Switzerland is a notable holdout — as well as standards for offshore centers, but no policing powers.

The spokesman added that some jurisdictions — including Singapore and the British crown dependencies Jersey and the Isle of Man — had taken steps to move closer to OECD norms for cooperation and disclosure.

A French official, who was not authorized to speak publicly on the matter, said the list, drawn up by the OECD, named "over 30 countries" that are uncooperative with the international tax authorities.

(So which 30 countries is a semi-secret)

An international financial diplomat, who has been involved in formulating tax policy but is not authorized to speak publicly, said that the true targets of European interest were Switzerland and Luxembourg. "The pressure is really building to an almost irresistible level" on the two countries, the diplomat said. "They realize they won't be able to carry on as they have been."

The French official, speaking of Switzerland and Luxembourg, said, "The heat is on them, that's for sure." The official added: "The desire from Europe is to send a very strong signal. We don't want to regulate how every country operates and sets tax, but banking secrecy is not acceptable."

Banking secrecy was enshrined in law in Switzerland in the 1930s. The government might have thought that it had put the issue to bed when it agreed several years ago to exchange banking information with the European Union in suspected cases of fraud. But those accords did not cover tax evasion, and the issue has re-emerged.

Last month, UBS of Switzerland, the largest manager of funds for the world's wealthy, agreed to pay a fine of $780 million and disclose the identity of some clients after the authorities in the United States authorities accused it of helping wealthy Americans dodge taxes.

"Switzerland is the big prize," Willem Buiter, a professor at the London School of Economics and Political Science, wrote on his blog last year, because "unlike the other tax havens, it is a country rather than a dwarf-state and postage-stamp curiosity, and it is outside the EU," therefore out of reach of EU enforcers.

Bank secrecy laws in Luxembourg, which is in the EU, have come under intense scrutiny after some of the investment funds based in Luxembourg were engulfed in the fraud at Bernard L.Madoff Investment Securities, exposing holes in the country's regulatory system.

But not all the G-20 members are as focused on the issue as France, Germany and, recently, the United States.

Canada, and to an extent Britain, would prefer to use the G-20 meetings to improve financial architecture and to agree on steps to lift growth, according to officials from some other countries. Austria's finance ministry said Wednesday that the G-20 was not the appropriate forum in which to deal with these issues.

For now, the Swiss government is holding the line on bank secrecy, but the question is for how much longer. Last week, Bern said that it "resolutely rejected" criticism of its banking secrecy. But it added that it "wishes to improve cooperation with other countries in the area of tax offenses."

A survey released Wednesday by the Swiss Bankers Association showed that banking secrecy is supported by almost four-fifths of the Swiss population, which wants to preserve client confidentiality.
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

Online TahoeBlue

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Re: Drug Money Laundering under Government Cover
« Reply #14 on: March 11, 2009, 10:33:14 PM »
A "New" OECD "Blacklist" to be unveiled at G20 summit, April 2: All frauds must be controlled frauds...

http://www.loc.gov/lawweb/servlet/lloc_news?disp0_767_text
Organisation for Economic Cooperation and Development: Tax Havens Targeted

On October 21, 2008, at a conference to combat international tax evasion and avoidance, representatives of 17 leading economies that are Member States of the Organisation for Economic Cooperation and Development (OECD) made a recommendation to the OECD that it compile a new blacklist targeting uncooperative tax jurisdictions. The current list targets only Andorra, Liechtenstein, and Monaco.
...
The planned release date of the blacklist, along with a "green list" of countries that are making progress in tackling tax fraud, is mid-2009. Other potential candidates for the blacklist are Panama, Gibraltar, and Bahrain, which reportedly "have promised to comply with OECD standards but with no discernible results." (Nouel, supra.)

http://www.dw-world.de/dw/article/0,,4070617,00.html
Taxes | 03.03.2009
France, Germany Want Global Black List for Tax Havens

In the future, no country, no institution and no financial product should be allowed to remain beyond regulation. That was the conclusion after the French and German finance ministers met in Paris on Tuesday, March 3.

French Finance Minister Christine Lagarde and her German counterpart Peer Steinbrueck said future action must be taken against any financial center that does not cooperate in the fight against tax fraud and money laundering.

The Organization for Economic Cooperation and Development (OECD) is to prepare a "black list" of uncooperative countries for the next G20 summit, to be held in London on April 2.

The two finance ministers came together in the French capital to coordinate preparations for that meeting, which will focus the deepening global economic and financial crisis.

Lagarde demanded that all banks currently active in tax havens be forced to issue annual reports on their activities. For his part, Steinbrueck said that tax havens would be on the G20 summit agenda.

"We want to act with determination against uncooperative places on matters of taxation, financial security or money-laundering," said Lagarde.
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

Online TahoeBlue

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Re: Drug Money Laundering under Government Cover
« Reply #15 on: March 13, 2009, 08:34:05 PM »
OEEC - OECD  - why are they important?

http://www.oecd.org/document/63/0,3343,en_2649_201185_1876671_1_1_1_1,00.html
History of the OECD
The forerunner of the OECD was the Organisation for European Economic Co-operation (OEEC), which was formed to administer American and Canadian aid under the Marshall Plan for reconstruction of Europe after World War II. Since it took over from the OEEC in 1961, the OECD vocation has been to build strong economies in its member countries, improve efficiency, hone market systems, expand free trade and contribute to development in industrialised as well as developing countries.

After more than four decades, the OECD is moving beyond a focus on its own countries and is setting its analytical sights on those countries - today nearly the whole world - that embrace the market economy. The Organisation is, for example, putting the benefit of its accumulated experience to the service of emerging market economies, particularly in the countries that are making their transition from centrally-planned to capitalist systems. And it is engaging in increasingly detailed policy dialogue with dynamic economies in Asia and Latin America.

But its scope is changing in other ways too. The matrix is moving from consideration of each policy area within each member country to analysis of how various policy areas interact with each other, across countries and even beyond the OECD area. How social policy affects the way economies operate, for example. Or how globalisation will change the world's economies by opening new perspectives for growth, or perhaps trigger resistance manifested in protectionism.

As it opens to many new contacts around the world, the OECD will broaden its scope, looking ahead to a post-industrial age in which it aims to tightly weave OECD economies into a yet more prosperous and increasingly knowledge-based world economy.
 
http://www.oecd.org/dataoecd/36/3/37267943.jpg
Council members of the Organisation for European Economic Cooperation (OEEC), on 17 February 1949.  The OEEC was the forerunner of the OECD.
From left to right: Max PETITPIERRE (Switzerland), Dr. Östen UNDÉN (Sweden), Joseph BECH (Luxembourg), Robert SCHUMAN (France), Paul-Henri SPAAK (Belgium), Sir Stafford CRIPPS (United Kingdom), Count SFORZA (Italy). A high-resolution image is also available

http://www.presidency.ucsb.edu/ws/index.php?pid=8060

123 - Statement by the President (Kennedy) Upon the Departure of the U.S. Delegation to the Meeting of the Economic Policy Committee of OEEC.
April 14, 1961

THE UNITED STATES delegation leaves this weekend to participate in the Paris meeting of the Economic Policy Committee of the Organization for European Economic Cooperation (OEEC), April 18-19. Now that the U.S. has ratified the convention establishing the Organization for Economic Cooperation and Development (OECD)-the body which will succeed OEEC--the Paris meeting takes on a high and symbolic significance. It will be the first meeting of the Economic Policy Committee to be conducted within the new spirit of the OECD-a spirit which the United States has undertaken to foster by assuming the responsibilities of full membership.

We are entering a new era in which the day-to-day economic affairs of the western nations are becoming more and more closely intertwined. We face problems and opportunities to which we must respond in full awareness of the common stake in sound decisions. To overcome recession and unemployment, to achieve and maintain high rates of growth, to encourage world economic development--these are no longer merely independent national goals to be pursued by each of our twenty member countries in isolation from the others. They are also common goals which call for sustained common action through economic policies which reflect our common interests.

The strength of the delegation which will represent us at the EPC meeting underscores the importance which we attach to this new departure in our economic relations with Western Europe and Canada and the seriousness with which we have accepted our obligations in the new organization. The delegation includes Walter W. Heller, Chairman of the Council of Economic Advisers, as head of the delegation; Robert V. Roosa, Under Secretary of the Treasury; Ambassador John W. Tuthill, Alternate U.S. Permanent Representative to the OEEC; William McChesney Martin, Jr., Chairman of the Board of Governors of the Federal Reserve System; and Edwin M. Martin, Assistant Secretary of State for Economic Affairs.

It is our hope to develop in the OECD a continuous working partnership in a spirit of flexibility and mutual accommodation among the officials responsible for economic policy in these twenty countries. The Paris meetings will be the first of many designed to build and strengthen relationships for dealing with common economic problems as they unfold.

The American people will follow with deep interest and high hopes the progress of this new venture in Western cooperation and unity.
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

Offline Revolt426

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Re: Drug Money Laundering under Government Cover
« Reply #16 on: March 13, 2009, 09:41:33 PM »
Do you really think they can maintain this circus till mid 2009?.
"Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate … It will purge the rottenness out of the system..." - Andrew Mellon, Secretary of Treasury, 1929.

Offline Dig

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Re: Drug Money Laundering under Government Cover
« Reply #17 on: March 14, 2009, 10:34:16 AM »
http://www.narconews.com/

http://whatreallyhappened.com/RANCHO/POLITICS/MENA/TATUM/tatum.html

http://www.serendipity.li/cia.html

http://notcia.com/blog/down-the-rabbit-hole/the-cia-drug-trade/


~~~~~~~~~~~~~~~~~~~~~~~~~

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...Drug Money Pipeline Charles Manatt, Clinton's New Ambassador to the Dominican Republic Demonstrates the Importance of Drug Money to Election 2000 and...
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...will come up against the fact that as much as $600 billion a year in laundered drug money is necessary to keep things going; that it is more profitable...
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...WHAT DO I DO WITH MY MONEY? Mike Ruppert Offers Advice at the Cusp of Collapse by Michael C. Ruppert © Copyright 2006, From The Wilderness...
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http://www.fromthewilderness.com/free/ww3/carlyle.html
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

Offline Dig

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Re: Drug Money Laundering under Government Cover
« Reply #18 on: March 14, 2009, 10:35:25 AM »
THE TRUTH & LIES OF 9/11
138 min - Nov 22, 2005 -    
http://video.google.com/videoplay?docid=8797525979024486145
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

Online TahoeBlue

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Multi-National Corporate Profit Laundering and Tax Evasion
« Reply #19 on: March 30, 2009, 05:17:56 PM »
Rarely will you see any exposure of the global Corporate money laundering....
Here is one of the rare articles exposing Corporate malfeasance .

Power -> Central Banks -> Corporations -> Government Nation States

http://www.dissentmagazine.org/article/?article=246

Spring 2005

Profit Laundering and Tax Evasion
By Lucy Komisar

The debate about cutting taxes for corporations and the wealthy is a false one. The issue is not whether transnational corporations and the very rich benefit from tax cuts, but that many of them walk away from all taxes. A General Accounting Office report found that between 1996 and 2000, 61 percent of all U.S. companies paid zero federal taxes. They accomplish this primarily through "profit laundering," a phrase that ought to be on the lips of every social critic.

Massive profit laundering sucks resources out of the United States and other countries, beggars public programs, and lays waste the social contract on which taxation must be based: that everyone pays a fair amount. It hobbles legislators and officials who want to spend money on social programs but can't dispute right-wing arguments that "there is no money." There is no money because it's been filched from public coffers with the help of the world's big banks, investment companies, and offshore financial centers. The scam is accomplished via offshore shell companies and bank accounts, and it is happening on a global scale.

Figures on the amount of wealth offshore are hard to come by, as none of the international financial institutions has seen fit to lay out the global picture. In 1999, Merrill Lynch's "World Wealth Report" estimated that one-third of the wealth of the world's "high net worth individuals" (as banks like to call them), then $11 trillion, might be held offshore. In 2004, Merrill Lynch revised its wealth figure to $28.8 trillion, but it was no longer estimating how much of that was hidden in tax havens. As the percentage of wealth offshore has been growing, the number would likely be $10 or $12 trillion.

 Such an estimate was made by "The Global Wealth Report" for 2003 by the Boston Consulting Group (BCG). It estimated the total holdings of cash deposits and listed securities of high-net-worth individuals at $38 trillion and then broke that down by North America-$16.2 trillion, of which less than 10 percent was controlled offshore; Europe-$10.3 trillion of which between 20 percent to 30 percent was controlled offshore; Middle East and Asia-Pacific area-$10.2 trillion, with assets controlled offshore ranging from 10 percent (Japan) to 70 percent (ME); and Latin America-$1.3 trillion, of which more than 50 percent is held offshore.

How much of the money that moves around the world is offshore? The International Monetary Fund estimates that assets held in tax havens equal about 50 percent of total cross-border assets. And according to Merrill Lynch and BCG estimates, assets held in tax havens, beyond the reach of effective taxation, would equal one-third of total global gross domestic product, the value of goods and services, which in 2003 was $36.2 trillion.

IF THE U.S. government were able to collect these evaded taxes, they would fully fund every social program currently on the books. During the 1950s, U.S. corporations accounted for 28 percent of federal revenues. Now, corporations represent just 11 percent. If big corporations paid taxes of 35 percent on their U.S. profits, as the law requires, corporate income taxes in 2002 would have been $308 billion instead of an estimated $136 billion.
The reverberations of these losses extend to the states. The Multistate Tax Commission estimates that state governments lose as much as $12.4 billion a year to various forms of tax sheltering.

How It Works
This is how the international tax-evasion system works, both for corporations and for individuals. In both cases, the system is based on the seventy "offshore" centers-tax havens-where secret shell companies and bank accounts are used to carry out transactions that create paper profits and losses, and where the legerdemain is immune from the eyes of tax authorities and law enforcement. There are about three million shell companies. Offshore centers, with 1.2 percent of the world's population, hold 31 percent of the assets and 26 percent of the stocks of American multinationals.

The offshore venues assess little or no taxes on foreign-owned shell companies. Some of these shells have no function other than to hold the assets of corporations or individuals. The offshore banks that handle the shell company money are not underground operations run by unknown shady characters. The banks' managers may indeed be shady, but most of them work for subsidiaries of the multinationals-Citibank, Bank of New York, Credit Suisse, Barclays, Société Générale, Deutsche Bank, and others.

More than half of world trade is within corporations, not between them. And half the world's trade goes through offshore centers, as corporations shift profits to where they can avoid taxes. Companies set up offshore "subsidiaries" that, on their books, perform functions that allow the firms to cut their taxes. The simplest ploy is the "sale" and "rental" back of a company's logo or other intangible assets. Or money stashed in tax havens is "loaned" back to the U.S. company, which then deducts interest payments on its tax returns.

Even more important is transfer pricing: allocating profits for tax and other purposes among parts of a multinational corporate group. Offshore "trading" offices or companies handle imports and exports, buying a U.S. export from a company at a sharply reduced paper cost and selling it abroad for the real-world market value, so the exporting company makes no profit. That stays with the tax haven trading company. In the reverse, a company buys goods at a real price and "sells" to the U.S. firm at a grossly inflated one, so the U.S. firm has a huge cost to deduct when it uses the item in manufacture or resells it at a loss.

Simon Pak of Penn State University and John Zdanowicz of Florida International University used aggregate customs data to examine the impact of over-invoiced imports and under-invoiced exports on U.S. federal income tax revenues for 2001. The findings were staggering. Would you buy plastic buckets from the Czech Republic for $973 each, tissues from China at $1,870 a pound, a cotton dishtowel from Pakistan for $154? U.S. companies, at least on paper, were getting very little for their exported products. If you were in business, would you sell bus and truck tires to Britain for $11.74 each, color video monitors to Pakistan for $21.90, and prefabricated buildings to Trinidad for $1.20 a unit? After all the deductions, the U.S. company has minimal profits. The offshore centers levy no taxes on "profits" claimed there. Comparing all the stated export and import prices to real-world prices, the professors figured the 2001 U.S. tax loss at $53.1 billion.

Companies using transfer pricing may file tax returns that show they are operating at a loss. What does Wall Street think? No problem: the United States allows companies to keep two sets of books, one for the Internal Revenue Service, the other for the Securities and Exchange Commission. The IRS sees a company deep in the hole, while stock buyers are pleased by profits that soar.

Transfer pricing is legal only if there is a true business purpose to the offshore entity. However, this rule is virtually never enforced, and account books in tax havens are off-limits to foreign tax and law enforcement investigators.

Offshore is also used to hide companies' overall balance sheets so tax authorities can't judge if their returns are valid. A Miami private investigator told me, "If I have a Colombian company that imports Mercedes trucks from Germany, the company ordering the trucks will be registered in the British Virgin Islands or Curaçao. The order will be made by the 'Dewey, Cheathem and Howe Company'; no Colombian firm will handle invoices. Colombian tax authorities won't know how much business they're doing."

The Bermuda Inversion
Since the late 1990s, some companies have been combining transfer pricing with the offshore transfer of their incorporations-especially to Bermuda. As non-U.S. companies, they have many more opportunities to avoid taxes by making deductible interest, management fees, or royalty payments to the new sheltered "foreign" parent. There was an outcry when Stanley Works announced it was moving its headquarters-on paper-from New Britain, Connecticut, to Bermuda and shifting its imaginary management to Barbados. (See Dissent, Spring 2003, "Offshore Banking: The Secret Threat to America," by Lucy Komisar.) Though its building and staff would stay in Connecticut, where the company manufactured hammers and wrenches, it would no longer pay taxes on profits from "international trade." It turns out that Stanley was planning to save on more than the taxes on business done outside the United States. With the help of its accountants, Stanley indicated in 2002 that even though it had paid $7 million U.S. tax on foreign income in 2001, the move would save at least $25 million in U.S. taxes, which suggests that Stanley was planning to cut taxes on U.S. profits by turning them into foreign profits. The immediate effect of the planned move would have been to increase the income of Stanley executives, who were already being paid millions. When the attorney general of Connecticut went to court, Stanley pulled back.

But others haven't. Tyco moved its management from Exeter, N.H., to Bermuda, then set up more than 150 subsidiaries in Barbados, the Cayman Islands, Jersey, and other offshore havens. Many of the shell companies played accounting games to shield Tyco interest, dividends, royalties, and other income from United States taxes. In 2001, Tyco reported that although 65 percent of its revenues came from the United States, only 29 percent of its "income" did-a ploy that immediately erased 71 percent of its $36 billion profits from its U.S. tax statement.

"The whole business [of offshore companies] is a sham," fumes New York District Attorney Robert Morgenthau. "The headquarters will be in a country where that company is not permitted to do business. They're saying a company is managed in Barbados when there's one meeting there a year. In the prospectus, they say legally controlled and managed in Barbados. If they took out the word 'legally,' it would be a fraud. But Barbadian law says it's legal, so it's legal."

The AFL-CIO and several unions are supporting shareholder resolutions and legal actions against the Bermuda inversions. The AFL-CIO filed a brief endorsing a shareholders class action suit against Nabors Industries, a Houston-based operator of oil-drilling rigs. The Laborers International Union is also campaigning against Nabors. AFSCME, the public employees union, filed shareholder resolutions asking Tyco and Ingersoll-Rand, a New Jersey industrial manufacturer, to return their corporate registrations to the United States. UNITE HERE, the textile and hotel and restaurant workers union, is targeting Cooper Industries, an electricity company. The AFL-CIO wants global companies to be registered where they operate, which are jurisdictions with real taxes and real corporate governance, says Damon Silvers, AFL-CIO associate general counsel.

Finding Individuals
Whereas public companies may leave a paper trail, it's harder to track down offshore tax cheating by individuals. Success often depends on serendipity and clues turned up by other investigations. Nearly 3,400 of the people reporting incomes of $200,000 or more in 2001 claimed that they owed no U.S. income taxes, a rise of nearly 45 percent over 2000. But that is only a fraction of individual tax evaders. Most of them simply don't report the bulk of their incomes; they use offshore shell companies as the owners of real estate, stocks, and companies. At least half the hedge funds, which cater to the mega-rich, are offshore, many in the Cayman Islands.

People open accounts with foreign brokers or set up foreign trusts and have the trustees buy the funds. To access cash, they use credit cards issued by the offshore banks or stock brokerages. They charge payments or withdraw money from U.S. ATMs and never have records on file in the United States. Some offshore credit cards have monthly charge limits as high as $1 million, not your normal "application-in-the-mail" plastic. The IRS says that as many as a million Americans may be paying their bills with credit or debit cards issued by offshore banks. Only a small number report their accounts, as required by law.

A few years ago, John M. Mathewson of San Antonio, Texas, accused by the Justice Department of money-laundering, made a plea bargain and turned over bank records that showed 1,500 tax-evading Americans with unreported accounts in his Guardian Bank and Trust Limited of the Cayman Islands. He admitted he was helping his clients evade taxes and that the other five hundred banks in the Caymans were doing the same, all helped by Cayman laws that strictly limited government and bank disclosure of bank records and personal information associated with depositors. The system, he said, was the basis of the Cayman financial industry. Depositors accessed their money easily through credit cards or anonymous wire transfers through the Guardian's accounts in the Bank of New York, Credit Suisse, and other cooperative banks.

BEGINNING IN 2002, the IRS has gone to court to get the major credit card companies to turn over accounts held by U.S. citizens in more than thirty offshore venues. But while that net may snare a lot of doctors and small businesspeople, it will miss the really rich, who run their money through offshore shell companies registered in the names of "nominees"-local lawyers and accountants. In a little reported but revealing (and honest) slip of the tongue, George W. Bush said in a campaign speech at the Northern Virginia Community College in Annandale last August, "On the subject of taxes, just remember when you talk about 'we're just going to run up the taxes on a certain number of people,' first of all, real rich people figure out how to dodge taxes, and the small business owners end up paying a lot of the burden of this taxation."

An inquiry by Senator Carl Levin in 2004 revealed that Riggs Bank in Washington, D.C., had helped ex-dictator Augusto Pinochet hide $8 million from Chile's tax authorities. Until 1998, Riggs owned a share of Valmet, an Isle of Man operation that set up shell companies and accounts to hide and launder money for companies controlled by the oil mogul Mikhail Khodorkovsky, now in a Russian jail, and for Robert Brennan, the New Jersey penny stock fraudster now in U.S. federal prison.

The impact of all this tax cheating is enormous. It robs public treasuries and constitutes an assault on the country's welfare and security. Health care, food programs, police and fire protection, educational opportunities, all are slashed and remain permanently out of reach because "there's not enough money."

Honest citizens pay extra every year to make up some of the difference. But you don't hear them blaming corporations or rich tax cheats for the size of their own tax bills. You don't hear domestic firms, which can't match the prices of multinational transfer-pricing competitors, complain about the skewed playing field. The scams that corporations use to launder profits are not on the public agenda. And most people don't understand how it is that rich individuals opt out of the tax system. Furthermore, corporate public relations has largely succeeded in convincing people that corporate tax "avoidance" is legitimate, that it's okay for multimillion-dollar companies, run by executives who pay themselves seven- and eight-figure salaries, to pay as little in taxes as they can get away with, even down to zero.

The situation is worse in developing countries, which lose tax revenues greater than the $50 billion in annual aid flows, according to a report by Oxfam International. And when governments starved of taxes don't have the money to finance decent public services, privatization and cuts in social programs are presented as the only solutions.

The Politics
In 1970, Congress, worried that rich Americans were evading taxes and that accounts were often linked to criminal activity, required taxpayers to report foreign bank accounts. But offshore secrecy made it easy for people to ignore the law. IRS inspectors tracking tax cheats were not allowed to see the accounts.

Beginning in the early 1980s, the issue of offshore tax havens was taken up in U.S. congressional hearings. However, except for a few years at the end of the Clinton administration, the American government's prime interest has been not to do anything to impede the free flow of capital or decrease other countries' reliance on the dollar. The Treasury Department wanted to "liberalize" financial flows, not regulate them.

In the late 1990s, the Organization for Economic Cooperation and Development worked out a policy for dealing with tax havens. It said it would take "defensive measures" against jurisdictions that had no or only nominal tax rates, that engaged in "ring fencing" (giving tax preferences only to foreigners who don't do business there), and that lacked transparency and allowed no effective exchange of information.

But then George W. Bush came to power. At the G-7 finance ministers meeting in February 2001, Treasury Secretary Paul O'Neill expressed concerns that the OECD was trying to dictate other countries' tax rates. In May of that year, he said that the OECD demands were "too broad" and withdrew U.S. support. Some tax havens pulled back from negotiating with the OECD.

At the end of the Clinton administration, the IRS proposed requiring U.S. banks to report the interest they pay to foreign depositors. The goal was not only to curb tax cheating by foreigners in their home countries but also evasion by Americans pretending to be foreigners. After Bush was elected, his brother Jeb, governor of Florida, wrote O'Neill warning that adoption of the Clinton proposal "could trigger a massive withdrawal of [nonresident alien] deposits in U.S. banks." The American Bankers Association predicted "serious economic harm" to the United States.

The United States already shares such bank information with Canada. Elise Bean, Democratic staff director of the U.S. Senate Permanent Subcommittee on Investigations, said, "There was a scream and a holler especially from banks with Latin American money that if we report it to the home countries, everybody's going to leave." Indeed, the tax cheats and drug traffickers and other criminals might leave. So the plan was slashed to include only a small number of mostly European countries. Countries with major tax evasion problems, including Russia, Mexico, other Latin-American and third world nations, were exempted.

After the events of September 11, 2001, anti-money-laundering measures were included in Title 3 of the Patriot Act. But multinational banks and brokerages, which make big commissions on offshore accounts and stock trades, intervened to water down the bill. In a letter to Paul Sarbanes, chair of the Senate Committee on Banking, Housing, and Urban Affairs, Financial Services Roundtable president Steve Bartlett expressed the financial industries' support for cutting a provision that would have made tax evasion or fraud against a foreign government a money-laundering offense because the United States "should not prevent foreign citizens from seeking a safe haven in America for their assets." Although Bartlett worried that citizens of countries with repressive governments would not be able to hide their money in the United States, cutting the amendment also meant that banks did not lose tax-evading accounts.

The Patriot Act requires the identification of customers of securities firms, which doesn't mean much unless that includes the names of beneficial [real] owners of offshore corporations. As Jack Blum, an expert on the offshore system who ran the Senate investigations on BCG and Iran/contra, told me, "Treasury was hammered to death by the securities industry, and that will not be required under customer identification. It should be there." Now terrorists, drug traffickers, and tax cheats can trade in stocks through U.S. brokerages undetected.

Adding insult to injury, the Bush 2004 tax bill gave a one-year "tax holiday" to corporations that brought back to the United States the money they had been stashing offshore to evade taxes. Instead of penalizing these profits-launderers by banning their offshore scams and demanding full tax payments, the government said that they could pay taxes on claimed offshore income at lower rates than if they had reported it as U.S. profits. Republicans blocked moves to make Bermuda inversions illegal or even to ban such tax evaders from federal contracts. Last year, Congress passed largely ineffective provisions that apply only to companies that inverted after March 4, 2003, a date intended to protect the big-name companies that have already inverted. Hilary Cain, Ways & Means counsel for Representative Lloyd Doggett, said, "The provisions are estimated to raise a pathetic $830 million over ten years, a drop in the bucket when it comes to the amount of revenue that is probably being lost to these inverted companies."

This shift in the tax burden has occurred without public debate and with the cooperation of both Republicans and Democrats on the Senate Finance Committee and House Ways and Means Committee. The few legislators fighting offshore tax evasion-led by Senators Carl Levin and Byron Dorgan and Representative Lloyd Doggett-are stymied, because they don't have active support from civil society. Progressives should be organizing such support. In 2003, a network of political action and development groups, most of them European, founded the Tax Justice Network (www.taxjustice.net) to raise the tax evasion issue internationally. In the United States, such groups as Citizens for Tax Justice and Citizen Works are working on tax issues, but they must be joined by others. Globalized greed threatens the well-being of us all.

Since the summer, the federal government has cut back funding for dozens of Superfund sites eligible for cleanup money, ordered reduced aid to millions of college students, slashed money for housing and community development by a third, and announced cuts in food stamps and in health projects aimed at diseases related to poverty. Taxes don't have to be raised to pay for these programs, they just have to be collected.

A policy program to end the offshore tax evasion system would include the following:

o Corporations should be taxed according to where they operate: where workers exist and real value is added, not where they carry out paper transactions or where they file corporate registrations.

o There should be an international agreement to tax multinational corporations on a unitary basis, with subsidiaries' profits computed as part of the whole.

o Transfer pricing and intra-company transactions, such as loans and rental of logos, aimed at reducing taxes should be made illegal.

o There should be one set of books for the SEC and the IRS, not two.

o Banks and brokerages should be required to obtain the names of real beneficial owners, who are persons, not shell companies or straw figures.

o Banks and companies that wish to do business in the United States should be required to practice full company and account ownership transparency and cooperate with American law enforcement.

o U.S. law should include domestic and foreign tax evasion as a predicate crime for money laundering.

o On a global level, there should be automatic information exchange between countries' tax agencies.

o Corporate executives and their lawyers and accountants should be liable for criminal penalties-mandatory jail terms-for profit laundering and tax evasion.

o Companies that proclaim adherence to corporate social responsibility should commit to rejection of transfer pricing and other tax evasion schemes.

o A corporation's payment of fair taxes and its rejection of tax evasion should be a condition for approval by socially responsible investment funds.

Both we and our elected officials must find a way to put these proposals before the U.S. public in a comprehensive and comprehensible way. If we don't, the money will never be available to enrich society as a whole.

Lucy Komisar, a New York journalist, is writing a book about the offshore bank and corporate secrecy system. She is a member of the steering committee of the Tax Justice Network.

Sources Consulted for this Article:

Washington, D.C.: General Accounting Office, "Comparison of Reported Tax Liabilities of Foreign- and US-Controlled Corporations 1996-2000," February 2004.
www.gao.gov/new.items/d04358.pdf < http://www.gao.gov/new.items/d04358.pdf >

"Corporate Tax Sheltering and the Impact on State Corporate Income Tax Revenue Collections," July 15, 2003.
< http://www.mtc.gov/TaxShelterRpt.pdf >

"U.S. Trade with the World: An Estimate of 2001 Lost U.S. Federal Income Tax Revenues Due to Over-Invoiced Imports and Under-Invoiced Exports," Oct. 31, 2002, < http://dorgan.senate.gov/newsroom/extras/pak-zdan.pdf >

Merrill Lynch's "World Wealth Report," 2004.
www.ml.com/media/18252.pdf < http://www.ml.com/media/18252.pdf >
< www.bcg.com/publications/publications_search_results.jsp?PUBID=899 >

IMF paper Offshore Financial Centers June 23, 2000.
www.imf.org/external/np/mae/oshore/2000/eng/back.htm#II_B < http://www.imf.org/external/np/mae/oshore/2000/eng/back.htm >
 
IMF September 2004 World Economic Outlook
www.imf.org/external/pubs/ft/weo/2004/02/data/index.htm < http://www.imf.org/external/pubs/ft/weo/2004/02/data/index.htm >

Mark Lopatin, "Tax avoiders rob wealth of nations," the London Observer, November 17, 2002.

"Calif. Opens Attack on Illegal Tax Shelters/ With Revenue Down, Other States May Use Campaign as a Model," by Jonathan Weisman, Washington Post, December 4, 2003.

"Tax Havens: releasing the hidden billions for poverty eradication," June 2000. www.oxfam.org.uk/what_we_do/issues/debt_aid/tax_havens.htm < http://www.oxfam.org.uk/what_we_do/issues/debt_aid/tax_havens.htm >

"U.S. Trade with the World: an Estimate of 2001 lost U.S. Federal Income Tax Revenues Due to Over-invoiced Imports and Under-invoiced Exports," by Simon J. Pak and John S. Zdanowicz, Florida International University, Oct 31, 2002.

"Money Laundering and Tax Havens: The Hidden Billions for Development," Report of a Conference organized by the Friedrich-Ebert-Stiftung, July 8-9, 2002, New York.

"The Taxonomist: The Tax Cheaters' Lobby, How the banking industry and the right foment tax evasion," by Robert S. McIntyre, American Prospect, November 18, 2002.
www.prospect.org/web/printfriendly-view.ww?id=6622 < http://www.prospect.org/web/printfriendly-view.ww?id=6622 >

"Uncle Sam Gets Shorted By the Bermuda Bye-Bye," by Allan Sloan, Washington Post,
July 5, 2002.

"The Tax Games Tyco Played." by William C. Symonds, with Geri Smith, Businessweek, July 1, 2002.
< http://www.business week.com/magazine/content/02_26/b3789018.htm >

Speech by New York district attorney Robert Morgenthau at the Brookings Institution, Washington D.C. June 5, 2002.

Damon Silvers, AFL-CIO associate general counsel, interview with the author, December 12, 2002.

"Federal Court Approves Service of IRS Summons on Mastercard," press release from U.S. Department of Justice, August 22, 2002.

"Private Banking and Money Laundering: A Case Study of Opportunities and Vulnerabilities," Minority Staff of the U.S. Senate Permanent Subcommittee on Investigations,February 5, 2001.

"Shell Games: Brash Russian Banker And His Deals Are Key To Laundering Probe-Mr. Kagalovsky's Menatep Set Up Offshore Firms Alleged to Skim Millions-Cashing In on the Isle," by Andrew Higgins, Alan S. Cullison, Michael Allen, and Paul Beckett, Wall Street Journal, August 26, 1999.

Elise Bean, speech at "Dirty Money and National Security," conference sponsored by the Brookings Institution, Washington D.C., September 10, 2003.
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

Online TahoeBlue

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Re: Drug Money Laundering under Government Cover
« Reply #20 on: April 17, 2009, 05:02:02 PM »
So backing up to Norkom and the "new" SWIFT message system. Via the new system they ensure compliance to the new laundering standards.... 

Quote
http://forum.prisonplanet.com/index.php?topic=79479.msg536686#msg536686

2. So they must come up with a "new" system that takes into account this "government/corporate" covered laundering.

Enter the "new" SWIFT message format:

"A press release from the Clearing House Association said the new message format "would include more detailed information about those conducting wire transfers in certain instances" without providing any detail."

In anticipation of the November 2009 deadline for supporting Swift's new enhanced message format for cover payments, the Federal Reserve Banks (FRBs) and The Clearing House have completed and distributed specifications for banks transmitting cover payments through the Fedwire Funds Service and Chips, the US wire transfer systems.

Enter Norkom Tech to be used by the major's to monitor wire transfers:

Norkom Technologies is a leading player in the financial crime and compliance market sector. Our software suite is deployed in more than 100 countries across four continents and monitors millions of transactions a day for global financial services clients.

[/b]

Oh and guess what Norkom is teaming up with IBM...

Identity Resolution  + Entity Analytic Solutions (EASTM)


http://www.reuters.com/article/pressRelease/idUS121432+16-Mar-2009+BW20090316
Norkom Adds Identity Resolution to Its Arsenal of Weapons in the War on Financial Crime
Mon Mar 16, 2009

Norkom Technologies today announced the availability of Identity Resolution, the latest addition to the company`s market-leading suite of solutions for financial crime prevention and regulatory compliance.

Powered by IBM InfoSphere Entity Analytic Solutions (EASTM), Norkom Identity Resolution enables financial institutions to reduce risk of fraud losses and non-compliance by precisely identifying "Who is Who" among customers, employees, vendors, or partners. The solution employs powerful algorithms to evaluate all data comprising a given identity, including: variations of names, accounts, social security and tax identification numbers, birthdates, and addresses.

Identity Resolution assigns every individual or business a unique identifier, which can play a vital role in all phases of the customer life cycle including account opening due diligence, risk scoring and analysis, fraud control, transaction monitoring, enterprise investigations, and watch list management.

Norkom experts will demonstrate Identity Resolution at Booth 54 during the 14th Annual Anti-Money Laundering International Conference at the Westin Diplomat Resort and Spa in Hollywood, Florida from March 16-18.

The recent turmoil in financial markets has heightened the need for accurate customer identification. Financial services firms that can automatically discover and maintain the true identities of people and businesses both inside and outside their organizations have a competitive advantage in today`s economy, according to Joe Friscia, General Manager and EVP of Norkom`s business in the Americas.

"Clients first think of Know Your Customer (KYC) regulatory compliance when made aware of the benefits of Identity Resolution, and that`s where it will be most widely used. However, this solution will also be tremendously powerful against money laundering and fraud, especially as financial crime attacks become more sophisticated," said Friscia.

"For example, any bank undergoing a merger or acquisition is certain to have disconnects in customer data. Brokerages that are converting to banks have to work with their customer data in ways that are unfamiliar to them. The insurance industry, with multiple lines of business, can be vulnerable to fraudulent claims. The power of Identity Resolution will let our clients analyze all their data, no matter where it originates, and fight back against potential criminal activity by getting a firm grip on everyone`s identity, even when fraudsters are deliberately trying to hide their true identities."

Friscia went on to explain that most large-scale transactional analysis systems in use today work against customer names or accounts, not against resolved identities. This gap leaves banks vulnerable to criminals engaging in cash-transaction structuring, real-time transactional fraud through the use of ACH, credit cards and wires, and mortgage fraud. Identity Resolution eliminates the gap, reducing false positives and increasing true positives in the course of customer due diligence, account monitoring, and financial crime investigations.

http://www.allbusiness.com/company-activities-management/management-risk-management/11560294-1.html

Norkom and IBM to Deliver Financial Crime and Compliance Solutions for the Financial Services...
September 18 2008

VIENNA, Austria -- Norkom Technologies today announced it is partnering with IBM (NYSE: IBM) to deliver new Financial Crime and Compliance (FCC) software solutions to the world's leading financial institutions.

The solutions will combine the expertise of IBM's Global Business Services and Norkom's FCC software. Under the terms of the agreement, which spans software development, marketing and sales, both organizations have committed to develop new and innovative solutions to help meet client needs. To fuel this development, the two companies have already aligned research and development around the IBM InfoSphere Entity Analytic Solutions (EAS) portfolio including the IBM Relationship Resolution product.
...
As the recognized global leader in the provision of FCC software solutions, Norkom works with clients such as HSBC, Credit Agricole, ANZ, American Express and Washington Mutual to meet their business and regulatory requirements. Over the past two years, Norkom has enjoyed tremendous worldwide success and expansion into Australia, Asia and the Middle East, building on its market leading position in North America and Europe.

Paul Kerley, CEO of Norkom Technologies said, "Working with IBM will enable us to further expand our global footprint and enter new markets and geographies through IBM's vast network of global relationships. But the real winners will be our current and future clients within the global financial services sector. Together with IBM, Norkom will deliver solutions, developed on leading-edge platforms, which will help financial organizations comply quickly and affordably with regulatory requirements and defend against operational and reputation risk and loss posed by external and internal financial attacks."

"Our customers face monumental challenges for evolving risk management requirements and to defend against illegal activities. Incremental, siloed investments are expensive and ineffective in dealing with the growth and sophistication of multi-channel threats," said June Felix, general manager, global banking and financial markets, IBM. "We are pleased to partner with Norkom to help customers better defend against attack efficiently and effectively across the enterprise."
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

Offline chrsswtzr

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Re: Drug Money Laundering under Government Cover
« Reply #21 on: April 28, 2009, 12:15:31 AM »
As for further indication, look at the smuggling too...  38 Tons of Cocaine ...

So they do it all, they move the drugs and the cash... they move it all, blood diamonds, gold, weapons, whatever....
search on  E-systems

http://forum.prisonplanet.com/index.php/topic,61440.msg367367.html#msg367367


http://www.madcowprod.com/07052006.html
Add human trafficking to the laundry list!  :-[

Full article: http://66.102.1.104/scholar?hl=en&lr=&q=cache:FZWm9Hi4__MJ:www.uri.edu/artsci/wms/hughes/natasha_trade.pdf+government+involved+in+Human+trafficking

"When the political and economic system weakened and collapsed, existing organizations leaped to fill the vacuum. Following the end of a government run economy, privatization enabled previously illegal markets of the shadow economy to operate legally and expand, but they retained the same methods of doing business based on corruption and protection schemes. As independent states emerged from the former Soviet Union they lacked organized and efficient regulatory agencies to hinder the growth and activities of crime networks. When the state system was no longer able to pay the salaries of many employees, they joined the criminal networks. 21 In Ukraine, people who were no longer able to support themselves with one salary or weren’t being paid for long periods of time, sought additional work. The only jobs available were in the newly emerging privatized, criminal businesses. By 1995, the shadow economy accounted for 50 percent of the GDP. 22 The result has been a criminalization of the economy in general and expansion of organized criminal networks."

Online TahoeBlue

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Re: Drug Money Laundering under Government Cover
« Reply #22 on: April 28, 2009, 02:32:52 AM »
Add human trafficking to the laundry list!  :-[
Full article: http://66.102.1.104/scholar?hl=en&lr=&q=cache:FZWm9Hi4__MJ:www.uri.edu/artsci/wms/hughes/natasha_trade.pdf+government+involved+in+Human+trafficking

Absolutely, Billions of dollars are laundered every day under governmental/corporate protection

Impact on Communities [and Independent Nation States]
...
The money made by the criminal networks does not stay in poor communities or countries, but is laundered through bank accounts of criminal bosses in financial centers, such United States, Western European countries or in off-shore accounts.69 Transnational money laundering schemes often include proceeds from trafficking in women.

In Israel, for instance, organized crime groups from the former Soviet Union, collectively referred to as “Russian” organized crime groups, have invested profits from trafficking in women, along with other activities, into legitimate businesses. Israel is considered a “safe haven” for illegal profits because money laundering there is fairly easy. In 1995, it was reported that between 2.5 and 4
billion dollars had been invested in banks and 600 million in real estate
.70

Moreover, trafficking in women has been found to be part of broader transnational criminal schemes. In August 1999, a money-laundering scheme was uncovered in the Bank of New York, USA. From early 1998 until mid-1999, US$10 billion dollars had been laundered through the bank.

The account belonged to known Ukrainian-born crime boss Semion Mogilevich, who the FBI and Israeli intelligence reported was involved in prostitution, weapons and drug trafficking and investment scams. According to one source, Mogilevich headed a large prostitution ring that operated in the Black and White Nightclubs in Prague, Poland and Budapest, Hungary.71 Mogilevich’s crime network, called the Red Mafia, operated in Ukraine, Hungary, the Czech Republic and the United States.72

Cases such as these demonstrate that most of the money made from illegal operations, such as trafficking in women, does not make its way back to the community. The money goes to the top where crime bosses make enormous profits. The “dirty money” is laundered into clean money after which it can be used to buy legitimate businesses and properties.

---------------------
Some reference material on the NWO Global profiteering from Nation State De-Stabilization - Creative Destruction:

Don't Forget Yugoslavia! Bush AND Clinton need to be tried for warcrimes!

What's CIA director Hayden hidin'? By Ray McGovern 

DEA to oversee Afghan Opium Trade
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

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Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

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Re: Drug Money Laundering under Government Cover
« Reply #24 on: May 06, 2010, 09:32:18 PM »
New swift (fedwire) format goes into effect - with a get around....

http://www.jpmorgan.com/tss/General/New_SWIFT_Payment_Format_to_Impact_Bank-to-Bank_Cover_Payments/1255280146290

New SWIFT Payment Format to Impact Bank-to-Bank Cover Payments

Effective November 21, 2009, a new payment format — MT202COV — will be introduced by SWIFT as part of their 2009 Standards Release, and J.P. Morgan is set to begin using it for all currencies and in all jurisdictions in which we clear cover payments.

This new format will change the way banks transfer payment originator and beneficiary details through the payment chain. These regulatory changes, which are designed to strengthen transparency in the payment industry, will affect all SWIFT member banks processing commercial payments through the cover payment method. The MT202COV changes are global and apply to all currencies. All SWIFT participants that use the cover payment method are expected to comply.
...

One Possible Alternative

Clients originating commercial payments do have an option. They can send payments to their correspondent banks using the serial payment method (MT103) instead of using the direct and cover method (MT202COV with an MT103 advice to the beneficiary's bank). This option offers a number of potential benefits, including the avoiding expensive and time consuming systems changes.

http://www.frbservices.org/campaigns/fedwireformat/pdf/031109_pmpg_guidlines.pdf
November 2009 Fedwire® Funds Format Changes for Cover Payments
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

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Re: Drug Money Laundering under Government Cover
« Reply #25 on: October 03, 2010, 06:05:12 PM »
http://www.examiner.com/atheism-skepticism-in-new-york/vatican-bank-under-investigation-for-money-laundering
Vatican Bank under investigation for money laundering
September 23rd, 2010

the Vatican Bank is now facing a new investigation concerning allegations of possible violations of money laundering regulations.

It was two suspicious wire transfers that led to the Bank of Italy investigation and led to prosecutors seizing $30 million from "the most secret bank in the world. Even experts claim there is no way to determine how much money the Vatican Bank controls. When Vatican Bank officials failed to follow the law by providing information about the transfers, adding up to nearly $30 million, the Bank of Italy to automatically suspend the transfers.

"The Vatican Bank is subject to particularly stringent anti-money laundering regulations because Italian law does not consider it to be operating within the European Union.

"It must supply more detailed information about transactions than European Union banks have to give." ...

http://www.cnn.com/2010/WORLD/europe/09/21/vatican.bank.investigation/index.html?iref=NS1
Vatican Bank faces money-laundering probe
...
Another Italian bank alerted Bank of Italy investigators to two Vatican Bank transactions that did not appear to comply with anti-money laundering requirements, the Bank of Italy said.

When Bank of Italy investigators told legal authorities about the transactions, they were told that judicial authorities were already investigating the Vatican Bank, a source close to the investigation said.
...
It is not entirely clear how much legal authority Italian officials have over the Vatican Bank, since the Vatican is technically a sovereign state.

An effort by Holocaust survivors to sue the Vatican Bank in the United States failed in 2009 when a U.S. court ruled that the Vatican Bank had "sovereign immunity" and was not subject to lawsuits filed in the United States.

A lawsuit against related entities is still in court.

http://www.businessweek.com/news/2010-09-24/vatican-bank-unaware-italian-account-was-frozen-corriere-says.html
Vatican Bank Unaware Italian Account Was Frozen, Corriere Says
...

Milan-based Credito Artigiano froze the account on April 18 after the IOR failed to provide data on its client relationships as required by the Bank of Italy and European money-laundering laws, Corriere said on Sept. 22, citing court documents.

Credito Artigiano informed the Bank of Italy on Sept. 14 that the IOR had requested two wire transfers from the account on Sept. 6 for a total of 23 million euros ($31 million), and finance police seized the funds in a “precautionary” move on Sept. 20, the Milan-based daily said.
...
The investigation stems from a “misunderstanding,” between the IOR and the bank that received the wire-transfer order, Vatican newspaper L’Osservatore Romano said yesterday. The daily said the bank was “clearing up” the issue with authorities.

Gotti Tedeschi, 65, who also teaches financial ethics at Milan’s Catholic University, declined to comment on the probe today in an e-mailed response to questions from Bloomberg News.



Everything you know is wrong: the Disinformation guide to secrets and lies By Russell Kick
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

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Re: Drug Money Laundering under Government Cover
« Reply #26 on: October 24, 2011, 12:50:39 PM »

Mexican Drug Cartels Stunning Files Link HSBC Money Laundering Biggest Bank Fraud Case 9/23/2011
http://www.youtube.com/watch?v=6ug3osAwZys

http://www.hispanicallyspeakingnews.com/notitas-de-noticias/details/hsbc-accused-of-laundering-money-for-mexico-drug-cartels/7700/

HSBC Accused of Laundering Money for Mexico Drug Cartels - May 17, 2011

The U.S. Justice Departments is reportedly working on a case against HSBC bankers they say have laundered money from Mexican drug gangs.

Still at the beginning of the investigation, the Justice Department is building its case against the bank. The investigation began in August of 2010, when the Office of the Comptroller of the Currency criticized the bank for “highly suspicious activity.”

Some believe that if the bank is found to have laundered dirty money, HSBC could pay a record $500 million fine, as the Justice Department may look to make an example of the bank.

Banks seem to have gotten away with money laundering with little more than a slap on the wrist. The perfect example is that of the bank Wachovia, which managed to avoid prosecution entirely after they were accused of “serious and systematic” violations of banking regulations. This resulted in $420 billion passing through its accounts unmonitored. It was found to have laundered funds for the Sinaloa Cartel, which used the money to buy planes to smuggle drugs. In the end, the bank got away with just paying $110 million in forfeitures and another $50 million fine. While $160 million is a substantial amount of money to most, for the bank – which has since been taken over by Wells Fargo – it is a measly amount compared to its total earnings.

At the heart of the money laundering investigations are Mexico’s “casas de cambio,” exchange houses which are often used by Mexican criminal groups to launder funds. One common practice is for drug trafficking organizations to smuggle large amounts of hard currency, collected from U.S. sales, back over the Mexican border, then deposit it into these exchange houses. The funds are then wired by these institutions into U.S. bank accounts. In the case of Wachovia, one exchange house, Casa de Cambio Puebla, used these funds to purchase a number of airplanes on behalf of the Sinaloa Cartel.

After the probe into Wachovia began, Puebla simply shifted its accounts to HSBC, according to Mexican prosecutors. Puebla was headed by Pedro Alfonso Alatorre Damy, who is accused of handling the finances of the Sinaloa Cartel.
...

http://finance.fortune.cnn.com/2010/10/07/hsbc-settles-money-laundering-probe/

HSBC settles money-laundering probe
By Colin BarrOctober 7, 2010

The Federal Reserve and the Office of the Comptroller of the Currency issued cease-and-desist orders to two U.S.-based HSBC (HBC) units for infractions including violations of rules that oblige bankers to scrutinize cross-border fund transfers. 
 
"The Bank's compliance program and its implementation are ineffective, and accompanied by aggravating factors, such as highly suspicious activity," the OCC said of HSBC Bank USA of McLean, Va. The violations were widespread and created "a significant potential for unreported money laundering or terrorist financing."
...
Regulators didn't announce any fines, but the OCC said Thursday's agreement "does not preclude the OCC from assessing a civil money penalty against the bank."
...
The order against HSBC is the second black eye in recent months for the giant global U.K. banks operating here. Barclays (BCS) in August agreed to pay $298 million to settle criminal probes of its dealings with clients based in companies facing U.S. trade sanctions, such as Iran and Libya.

http://www.worldbankingworldfraud.com/



World Banking World Fraud, Using Your Identity Available Now...

World Banking and the Culture of Corruption

It isn’t everyday that you get to see a major international bank engage in bank fraud and money laundering on a massive scale, but this was my experience at HSBC. I had worked at HSBC for nearly a year before I was placed over a different set of branches in Suffolk County, NY. What I found in these branches was an intertwined web of deceit and outright fraud that had implications up into the higher echelons of the company.
...
I came forward because it was my job as a senior business relationship manager to maintain and develop relationships with our small to medium customers. But what I learned as I went forward in my job was that many of these customers did not actually exist; or their companies were using fraudulent tax IDs, stolen Social Security Numbers and fraudulent tax documentation. The sums of money that channeled through their accounts were far too large for people at the bank not to know what was happening, and as I began to press the topic up the chain of command not only did I receive death threats, but I learned the names of those within the bank who were both enabling and committing fraud and money laundering on a massive scale. I was up against a culture that turned even otherwise good employees against me, but I wouldn't allow the crimes to go on with my tacit approval. I had to speak up.
...
World Banking World Fraud exposes the way that international banks handle illicit funds throughout the globe and keep from having their transactions detected. This book is a must read for anyone who is concerned with the stability and legality of international banking.
 
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

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Re: Drug Money Laundering under Government Cover
« Reply #27 on: July 23, 2012, 11:00:19 PM »
FTR #412 The Engineer Intends To Wreck The Train
...

20. Further down in the text of the Dissent article, Ms. Komisar discusses the amount of wealth of US-based multinationals that is believed to be in tax havens, as well as the percentage of overall world wealth secreted in these repositories.

“ . . . The money involved is monumental. Secrecy havens have 1.2 percent of the world’s population and hold 26 percent of the world’s wealth, including 31 percent of the net profits of U.S. multinationals. According to Merrill Lynch & Gemini Consulting’s ‘World Wealth Report’ for 2000,

one third of the wealth of the world’s ‘high net-worth individuals’ (as banks like to call them), nearly $6 trillion out of $17.5 trillion, may now be held offshore.

Some $3 trillion is in deposits in tax haven banks and the rest is in securities held by IBC’s and trusts. Experts believe that as much as half the world’s capital flows through offshore centers. The International Monetary Fund (IMF) says that between $600 billion and $1.5 trillion of illicit money is laundered annually, equal to 2 percent to 5 percent of global economic output. These offshore centers awash in money are the hub of a colossal, underground network of crime, fraud, and corruption.”
...



http://endthelie.com/2012/07/21/report-at-least-20-3-trillion-hidden-in-offshore-banks-by-global-elite/#ixzz21Mr1ryB2
Report: at least $20.3 trillion hidden in offshore banks by global elite
By Madison Ruppert
Editor of End the Lie

According to the most detailed study of the so-called offshore economy to date, conducted by James Henry, former chief economist with the consultancy McKinsey, the world’s richest people have taken advantage of cross-border tax laws in order to put away a shocking $20.31 trillion in offshore banks.
 
While this likely isn’t all that crazy to those who are familiar with the massive conflicts of interest in the Federal Reserve and the fact that the Federal Reserve works with banks to put Americans on the line for the failures of banks, it might be surprising to those who have no clue how the international financial system works.
 
The astounding sum uncovered by the Henry is slightly less than the 2011 Gross Domestic Product (GDP) of Japan ($5.87 trillion) on top of the 2011 United States GDP ($15.09 trillion).

The findings were published in the new report, “The Price of Offshore Revisited,” which shows that money continues to leak out of major nations and into infamous tax havens like Switzerland and the Cayman Islands.
 
These transactions are enabled by private banking institutions which all battle to get the accounts of what the Guardian calls the “global super-rich elite,” also known as high net-worth individuals.

Henry demonstrates that sums between £13 trillion ($20.3 trillion) and £20 ($31.23 trillion) have made their way from countries around the world into these secretive banking jurisdictions
...
More at EndtheLie.com - http://EndtheLie.com/2012/07/21/report-at-least-20-3-trillion-hidden-in-offshore-banks-by-global-elite/#ixzz21VNoA8B1
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

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Re: Drug Money Laundering under Government Cover
« Reply #28 on: July 24, 2012, 01:00:14 PM »
http://www.huffingtonpost.com/2012/07/19/mitt-romneys-offshore-tax-accounts_n_1686742.html?utm_hp_ref=elections-2012
Mitt Romney, Offshore Tax Accounts Entangled Since Bain Capital's Founding
Posted: 07/19/2012

WASHINGTON -- Mitt Romney's involvement with anonymous accounts in offshore tax havens goes back to the 1984 founding of Bain Capital, which raised millions of dollars from wealthy foreigners through shell corporations in Panama, a nation notorious for tax avoidance schemes and money laundering, according to a report by The Los Angeles Times.

The Times story follows on Romney's recent acknowledgement to the National Review that he established funds in the Cayman Islands for the explicit purpose of helping wealthy investors avoid paying American taxes. Bain currently operates at least 138 shell companies headquartered in the Cayman Islands, which, like Panama, has long been associated with both legal and illegal tax machinations and money laundering.

"The so-called offshore account in the Cayman Islands, for instance, is an account established by a U.S. firm to allow foreign investors to invest in U.S. enterprises and not be subject to taxes outside of their own jurisdiction," Romney told National Review's Robert Costa on Wednesday. "So in many instances, the investments in something of that nature are brought back into the United States. The world of finance is not as simple as some would have you believe. Sometimes a foreign entity is formed to allow foreign investors to invest in the United States, which may well be the case with the entities that Democrats are describing as foreign accounts."

By taxes "outside of their own jurisdiction," Romney was referring to taxes imposed by the U.S. government.

"He's basically admitting here that the Bain funds are set up in the Cayman Islands to help people avoid tax," Rebecca Wilkins, senior counsel for federal tax policy at Citizens for Tax Justice, a nonprofit tax reform group, told HuffPost. "If you want to cheat on your taxes, boy, they're making it really easy."

According to the Times, family members of some of Bain Capital's first investors were tied to right-wing death squads in Latin America, while others were later convicted of various financial frauds unrelated to Bain.

These early Bain investors did not directly buy into Bain's funds, however. Instead, they established shell corporations in Panama, and those shell companies invested in Bain. Panama has long had extreme bank secrecy laws and lax corporate registration standards, which help shield the identities of global investors for both legitimate and illegitimate purposes.
...
While many of Bain's early investors lived outside the U.S., shell companies in Panama and the Cayman Islands can also help American taxpayers invest in U.S. companies without accruing a tax bill with the IRS.

By establishing personal offshore entities, Americans can pose as foreign investors and avoid paying U.S. taxes on investments in American firms.

"Even a U.S. investor pretending to be a foreign investor, by using a Bermuda or Cayman Islands shell entity, can avoid U.S. tax this way," Wilkins said. "And we know that's going on. We know that U.S. investors are evading taxes by pretending to be foreigners."
...
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

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Re: Money Laundering under Government Cover
« Reply #29 on: July 26, 2012, 12:10:56 PM »
Oh and I never posted about the HSBC Drug Money Laundering fine settlement....

28 million -  a drop in the drug blood bucket...


http://www.washingtonpost.com/world/the_americas/mexico-fines-hsbc-28-million-in-money-laundering-investigation/2012/07/25/gJQAarY28W_story.html
Mexico fines HSBC $28 million in money laundering investigation

MEXICO CITY — Mexican regulators have levied a $28 million fine against the Mexico subsidiary of London-based HSBC bank for failing to prevent money laundering through accounts at the bank.

Mexico’s National Securities and Banking Commission said Wednesday that HSBC has paid the fines, equivalent to 379 million pesos, or about half of the subsidiary’s 2011 annual profits.

The commission, and a report by a U.S. senate investigative committee, found the bank failed to control suspicious flows of billions of dollars through its accounts and didn’t respond promptly after being warned about a huge swell in dollar cash transactions at the bank.

Guillermo Babatz, president of the banking commission, said that at its peak in the mid-2000s, HSBC had become the main shipper of dollar cash transfers from Mexico to the United States, accounting for about half of the total flow, even though it wasn’t then among the country’s largest banks.

Babatz said that regulators detected the swell of suspicious transactions and warned local management in 2007 and 2008, but got little response. He said regulators then took the unusual step of contacting top management of the bank’s central offices. “When we contacted the head offices, it was because we were very worried and didn’t get a response” from local management, who he said “minimized the risks.”

The commission said Wednesday the violations began in the early 2000s.

A U.S. Senate investigative committee said that in 2007 and 2008 HSBC Mexico sent north about $7 billion in cash. “Bulk cash shipments could reach that volume only if they included illegal drug proceeds,” the committee concluded in a report.

HSBC Mexico acknowledged in a statement that it failed to report 39 suspicious transactions and had been late in reporting 1,729 others.

 “HSBC Mexico recognizes it failed to strictly comply with banking regulations, and with the standards that regulators and clients expect of our institution,” the bank said.

The banking commission said the bank began to respond with “drastic and assertive” corrective measures in late 2008. HSBC noted that in 2009, it became the first Mexican bank to completely stop handling cash dollar transactions.
...
He said banks in Mexico had used intensive lobbying to get favorable regulatory rules, and said those rules should be changed because they favor financial institutions and put regulators at a disadvantage.

http://in.reuters.com/article/2012/07/26/hsbc-mexico-idINL2E8IQ3TI20120726
HSBC Mexico chief says fine concludes money-laundering probe
...
Mexico's National Banking and Securities Commission (CNBV) levied the $27.5 million fine a week after a scathing U.S. Senate report slammed HSBC for letting clients shift funds from dangerous and secretive countries.

Luis Pena, HSBC's chief executive in Mexico, said the bank recognized its mistakes and that the issue was now settled after the fine, the biggest-ever handed out to a bank by the CNBV.

"The case is concluded," Pena told Mexican radio. "As I say, this was about serious administrative faults."

"These administrative faults didn't give our bank the right kind of protection from undesirable people who could have used our bank to channel funds of illicit origin."
...
Last week, a U.S. Senate panel alleged that HSBC acted as a financier to clients routing funds from the world's most dangerous places, including Mexico, Iran and Syria, doing regular business in areas tied to drug cartels, terrorist funding and tax cheats.

The Senate report slammed a "pervasively polluted" culture at the bank and said between 2007 and 2008, HSBC's Mexican operations moved $7 billion into the bank's U.S. operations.

http://www.aljazeera.com/news/americas/2012/07/201271714112156413.html
HSBC official resigns over drug money scandal
Compliance chief at Europe's largest bank quits over US inquiry that revealed porous anti-money laundering practices.
 Last Modified: 18 Jul 2012

The head of compliance at HSBC has resigned from his position and apologised after a US senate investigation found that Mexican drug cartels laundered billions of dollars through its US division.
 
David Bagley told the senate investigations panel on Tuesday that he will remain at the London-based bank in a new role.
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

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Re: Money Laundering under Government Cover
« Reply #30 on: January 07, 2013, 03:12:26 PM »
HSBC Money Laundering Mexican Cartels - DOJ wristslap - Gov gets its cut

http://www.guardian.co.uk/business/2012/dec/11/hsbc-fine-prosecution-money-laundering
HSBC's record $1.9bn fine preferable to prosecution, US authorities insist
Officials defend decision not to prosecute in money-laundering case despite HSBC's 'blatant failure' to implement controls

Dominic Rushe in New York and Jill Treanor in London
guardian.co.uk, Tuesday 11 December 2012

...
US authorities defended their decision not to prosecute HSBC for accepting the tainted money of rogue states and drug lords on Tuesday, insisting that a $1.9bn fine for a litany of offences was preferable to the "collateral consequences" of taking the bank to court.
...
HSBC, Britain's biggest bank, said it was "profoundly sorry" for what it called "past mistakes" that allowed terrorists and narcotics traffickers to move billions around the financial system and circumvent US banking laws. Breuer said Mexican drug traffickers deposited hundreds of thousands of dollars each day in HSBC accounts
...

HSBC also helped rogue states including Libya, Sudan, Burma and Iran to work around US rules banning them from using US financial system in a scheme that went on for decades.



Elevated Paedophiles - Lord Horatio Herbert Kitchener and
Lord Robert Stephenson Smyth Baden-Powell of Gilwell - Greg Hallet


The Boer War: The early British formula for war, first used in Ireland, taken to South Africa,
then exported to Germany via Switzerland:

Roll in your armoury under the guise of peace;
Destroy the threat;
Organise the locals worse than before;
Commit mass murder by starvation in concentration camps;
Rape and pillage the nation’s resources; then


Export their resources around the world to finance the ‘protection’ racket . . .

Seems to work time and time again.
These photos are of the British managing the Boer War (1899–1901).

http://www.mahalo.com/opium/


Notice that focal point in the armpit of West Africa? That's Equatorial Guinea home of KBR/Halliburton :

http://dissidentvoice.org/2010/07/all-in-the-family-global-drug-trade-fueled-by-capitalist-elites/
All in the “Family”: Global Drug Trade Fueled by Capitalist Elites
by Tom Burghardt / July 21st, 2010
...

Journalists Hugh O’Shaughnessy and Paul Lashmar revealed that “the UK-based multinational (HSBC) stands accused of laxity in the fight against money laundering, drug trafficking, corruption and terrorism, notably in the oil-rich African state of Equatorial Guinea.”
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

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Re: Money Laundering under Government Cover
« Reply #31 on: January 07, 2013, 03:59:36 PM »
http://www.policymic.com/articles/10959/bank-of-america-laundered-drug-cartel-money-according-to-fbi
FBI: Drug Cartels Use Bank of America to Launder Money
Ryan Dahrouge
 6 months ago

An affidavit released by the FBI last month reveals one of Mexico’s most violent narcotic-trafficking drug cartels has been laundering money into the U.S. through accounts with Bank of America.
 
Beginning in or around 2009, members of the infamous Los Zetas cartel had been sneaking drug earnings past federal authorities into Texas and then laundering them through Tremor Enterprises LLC, a horse training and racing business that was run, in part, by José Trevino Morales, a brother of cartel leaders, Miguel Angel Trevino Morales and Omar Trevino Morales.
 
The Morales brothers in Mexico would purchase Quarter Horses, known for their potential in short sprint racing, through transactions from two accounts established at Bank of America. Once the horses were considered in prime racing condition, they were sold cheaply to José Trevino Morales, at which point he could put the horses up for auction. The resulting profit allowed the Morales brothers to disguise their huge drug earnings as legitimate margins.

This scheme hit its peak in September 2010, nearly a year after the Bank of America accounts were opened. Mr. Piloto, one of the horses allegedly bought with cartel money, won the $1 Million first prize at the All American Futurity at Ruidoso Downs, in New Mexico and the winnings were deposited into a Bank of America account owned by Tremor Enterprises LLC. José Trevino then purchased the horse from his brothers for $100,000 and one auction later, the Moraleses could claim a legitimate source for their earnings.
...
Since December 2009, Bank of America filings reported an estimated dozen transactions between the two accounts, totaling $1.5 Million.
 
Federal authorities aren’t new to this type of security lapse. Passed in 1970, the Bank Secrecy Act requires banks to report to federal officials suspicious transactions of $10,000 or more; a failure to do so can lead to penalties or prosecution.

In 2010, HSBC’s North American unit’s procedures for money-laundering detection were deemed poor and the company was ordered to improve or face steep penalties.

Similarly in late 2010, the Wells Fargo-acquired bank, Wachovia, was ordered to pay a $160 million penalty when they failed to detect and investigate the use of their accounts by drug traffickers to launder money into the U.S., including a transfer of $378.4 billion, the equivalent of a third of Mexico’s GDP.

Bank of America, it should be noted, is not being charged with any wrongdoing.
 
Oversight like this allows foreign organizations free range for their finances in the U.S., a notion dangerous when applied to even a legitimate industry. Wells Fargo’s penalty was substantial, but it was a mere 2% of their 2009 profits, a year in which they earned $12.3 billion.

Allowing banks to forgo the undoubtedly tedious and expensive task of establishing effective anti-money laundering programs in exchange for a fine when the security lapse comes to the FBI’s attention, possibly in the form of a wealthier cartel member, compromises national security and strengthens networks and industries the Department of Defense has vowed to dismantle.

This latest laundering scheme is evidence of a systematic failure by the banking industry to address the problems in their detection programs and it’s coming at the expense of the safety of the Mexican and American public.
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

Online TahoeBlue

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Re: Money Laundering under Government Cover
« Reply #32 on: January 07, 2013, 04:08:05 PM »
http://www.nytimes.com/2012/09/15/business/money-laundering-inquiry-said-to-target-us-banks.html?pagewanted=all&_r=0
Money-Laundering Inquiry Is Said to Aim at U.S. Banks
By JESSICA SILVER-GREENBERG and BEN PROTESS
Published: September 14, 2012

Federal and state authorities are investigating a handful of major American banks for failing to monitor cash transactions in and out of their branches, a lapse that may have enabled drug dealers and terrorists to launder tainted money, according to officials who spoke on the condition of anonymity.
...
Regulators, led by the Office of the Comptroller of the Currency, are close to taking action against JPMorgan Chase for insufficient safeguards, the officials said. The agency is also scrutinizing several other Wall Street giants, including Bank of America.
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These issues may have been put on hold during the financial crisis, and now regulators can go back to focus on money-laundering and other compliance problems,” said Alma M. Angotti, a director at Navigant, a consulting firm that advises banks on complying with anti-money-laundering rules.
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The comptroller’s office, JPMorgan and Bank of America declined to comment.
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Back in July the Senate Permanent Subcommittee on Investigations accused HSBC of exposing “the U.S. financial system to money-laundering and terrorist financing risks” between 2001 and 2010.

The British bank, which is also under investigation by federal and state prosecutors, is suspected of funneling cash for Saudi Arabian banks with ties to terrorists, according to federal authorities with direct knowledge of the investigations. HSBC officials have pointed out that they had strengthened controls to prevent money-laundering and replaced employees tainted by the allegations. Standard Chartered maintains that “99.9 percent” of the transactions under scrutiny complied with that rule and involved legitimate Iranian banks and corporations.
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In April, the regulator issued a cease-and-desist order against Citigroup for gaps in its oversight of cash transactions. The order cited “internal control weaknesses including the incomplete identification of high-risk customers in multiple areas of the bank.” A person close to the bank attributed part of the problem to an accident when a computer was unplugged from anti-money-laundering systems.

Citi did not admit or deny wrongdoing, but said in April that it had already undertaken many of the reforms required.
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Bank of America was not accused of wrongdoing, and the comptroller’s office has said privately it is unlikely to bring an action related to the case, according to a person with knowledge of the matter.
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JPMorgan agreed to pay $88.3 million to the Treasury Department, which had accused the bank of thwarting United States sanctions by processing roughly $178.5 million for Cubans in 2005 and 2006.
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JPMorgan also made an improper $2.9 million loan in 2009 to a bank tied to Iran’s government-owned shipping line, according to the Treasury Department
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Last year, JPMorgan agreed to pay $88.3 million to the Treasury Department, which had accused the bank of thwarting United States sanctions by processing roughly $178.5 million for Cubans in 2005 and 2006
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In a 2011 statement, Treasury officials called the bank’s actions “egregious,” adding that JPMorgan’s “managers and supervisors acted with knowledge of the conduct constituting the apparent violations and recklessly failed to exercise a minimal degree of caution or care.” At the time, JPMorgan said that it had not dealt directly with institutions in Cuba and Iran and that it had merely acted as a middleman.
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

Online TahoeBlue

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Re: Money Laundering under Government Cover
« Reply #33 on: January 08, 2013, 01:22:22 PM »
great interview about money laundering:

http://www.coasttocoastam.com/show/2013/01/07

Money Laundering/ Natural Remedies
Date: 01-07-13
Host: George Knapp
Guests: Bill Sardi, Robert Mazur

In the first half, George Knapp welcomed Robert Mazur, who as an undercover federal agent infiltrated the shadowy world of international money laundering, and drug cartels.

We're not very successful at stopping money laundering at its highest level, he noted, citing statistics from the Dept. of Justice asset forfeitures-- about $1 billion in assets are seized in a year, but illegal drug organizations are generating about $400 billion in revenue.

It has also come to light that terrorist organizations such as Hezbollah have aligned themselves with drug cartels "to not only provide free passage for drugs and money, but also to be involved in the profits of it," he reported.
 
The banks are the critical factor in the "equation of corruption" behind the cartels-- "without their help the mountains of cash that are created from the sale of drugs would not be turned into the legitimate appearing businesses...without the help of these banks the strength of these drug organizations would be dwarfed," he said.

HSBC bank was at one time involved in the "bulk bank note business," buying and selling $300-400 billion in currency in various parts of the world known for the drug trade, he detailed, adding that shipments of cash were at times large enough to fill a 40 ft. freight container.

Eventually, HSBC admitted mistakes, and was fined and given deferred prosecution. Banks such as Wachovia, Bank of Atlantic, American Express, Union Bank, Lloyds Bank, Credit Suisse, and Barclays were all fined for improprieties related to money handling, yet not one banker ever went to jail, he lamented.

http://www.the-infiltrator.com/

ROBERT MAZUR spent five years undercover infiltrating the criminal hierarchy of Colombia’s drug cartels. The dirty bankers and businessmen he befriended—some of whom still shape power across the globe—knew him as Bob Musella, a wealthy, mob-connected big shot living the good life. Together they partied in $1,000-per-night hotel suites, drank bottles of the world’s finest champagne, drove Rolls-Royce convertibles, and flew in private jets. But under Mazur’s Armani suits and in his Renwick briefcase, recorders whirred quietly, capturing the damning evidence of their crimes. Then, at a staged wedding, he led a dramatic takedown that shook the underworld. In the end, more than eighty men and women were charged worldwide. Operation C-Chase became one of the most successful undercover operations in the history of U.S. law enforcement, and evidence gathered during the bust proved critical to the conviction of General Manuel Noriega.

The Infiltrator is the story of how Mazur helped bring down the unscrupulous bankers who manipulated complex international finance systems to serve drug lords—including Pablo Escobar—corrupt politicians, tax cheats, and terrorists. It is, at its broadest, a shocking chronicle of the rise and fall of perhaps the biggest and most intricate money-laundering operation of all time—an enterprise that cleaned and moved hundreds of millions of dollars a year. At its heart, it’s a stunning and vivid portrait of an undercover life—and the sacrifices it required.

 Filled with dangerous lies, near misses, and harrowing escapes, The Infiltrator is as bracing and explosive as the greatest fiction thrillers—only it’s all true.
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

Offline BOBkennedy

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Re: Money Laundering under Government Cover
« Reply #34 on: January 10, 2013, 09:47:48 PM »
whats crazy to me is that the nfl has the nlfpa the nba the nbapa....i think we need a usapa...the athletes dont like their pay their playin conditions or anything they strike...and eventually get what they want....so im thinkin that if things really get tuff everyone in america is goin to have to strike...and then we will have a strong enuff voice to make our opinions wants and needs heard...so forget voting for a pres we need to start lookin for a United States of America Players Association leader....real fuqn talk.....any suggestions??

then and only then will we get fair wages..and have the power to demand that our jobs be shipped back to america....demand our living conditions improve...demand our food isnt filled with posion.,..demand our veterns are takin care of....our elderly has the means to get medicine....our vaccines and drinkin water to not be tainted....every race and gender has the same rights and oppertunities...we are the voice not the gov;t...how many people would have the balls to stand up??

the answer to every problem is usually right in front of your face...we are the biggest producers of money in the us...but our power is slowly dwindling away...the more lost jobs the less we produce the less power we have...ever wonder why they really want everyone on welfare??? cuz then we lose all of our power and bcome dependant

and then we could demand justice to be served to every american that has been taking advantage of...

we need to find atleast 5 different people in 5 diff regions of the US to set up rallies and bring people together so we can lay the blueprint to a new and totally free usa!!!!!!!!!!

Online TahoeBlue

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Re: Money Laundering under Government Cover
« Reply #35 on: February 27, 2013, 05:10:27 PM »
http://www.guardian.co.uk/world/2013/feb/27/us-drugs-prosecutors-defending-traffickers

US drugs prosecutors switch sides to defend accused Colombian traffickers
After working to take down cartels, former officials say America's 'war on drugs' is misguided and the human cost too high

Rory Carroll in Los Angeles
guardian.co.uk, Wednesday 27 February 2013 11.46 EST

US prosecutors and other senior officials who spearheaded the war against drug cartels have quit their jobs to defend Colombian cocaine traffickers, saying their clients are not bad people and that United States drug policy is wrong.

Senior former assistant US attorneys and Drug Enforcement Administration agents are turning years of experience in investigating, indicting and extraditing narcos to the advantage of the alleged traffickers they now represent.

"I'm not embarrassed about the fact that I changed sides," said Robert Feitel, a Washington-based attorney who used to pursue traffickers and money launderers at the Department of Justice. "And I'm not shy about saying that no one knows better how a prosecutor thinks. That's what people get when they come to me.

There are lots of hidden things to know about these cases."

The fence-jumpers include Bonnie Klapper, who was feted for taking down the Norte del Valle cartel, Leo Arreguin, who headed the DEA's office in Bogota, and reportedly former members of the Immigration and Customs Enforcement Agency, Ice. They work in separate legal practices with their own clients, not as a group.
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Feitel, who worked closely with the Department of Justice's Narcotic and Dangerous Drugs Section until retiring from public service in 2009, said he grew frustrated with official [PURPOSEFUL - Having a useful purpose ] bungling in drug-related cases. "I realised I no longer wanted to be part of this process. It was time to go. After 22 years, enough."

He became a defence lawyer, started learning Spanish and uses his expertise to represent around two dozen Colombian clients from a DC-based office. "It's hard to defend a Colombian on drugs trafficking if you don't understand the predicate of how drugs trafficking currently works in Colombia."
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As an assistant US attorney Bonnie Klapper, working from New York, earned a high profile in helping to dismantle the Norte del Valle cartel, a role publicised in the books The Takedown, by Jeffrey Robinson, and El Cartel de los Sapos, by Andres Lopez Lopez, a best-seller in Colombia which was turned into a telenovela and a film.

Klapper (pictured) retired from public service last February after 26 years and went into private practice with offices in New York and Miami. Two months later Colombian media reported her visiting La Picota jail in Bogota to see Andrés Arroyave, alias Máquina, a 25-year-old alleged drug lord accused of killing a lawyer and a DEA informant, among others, in revenge for his father's murder. He has a reported $100m fortune
...
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

Offline OpenSight

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Re: Money Laundering under Government Cover
« Reply #36 on: March 01, 2013, 07:43:32 PM »
I'm not sure I believe the part about the former officials say America's 'war on drugs' is misguided and the human cost too high


I'm sure they are not doing the work pro bono.  Sounds like a great way to get a bunch of that cash back onto our side of the fence,...freshly laundered of course...
Reality is real, existence exists.

Online TahoeBlue

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Re: Money Laundering under Government Cover
« Reply #37 on: May 10, 2013, 03:08:02 PM »
[ I love this "leaked" selective enforcement ]

http://www.guardian.co.uk/politics/2013/may/09/100-richest-uk-billions-offshore-tax-havens
100 of UK's richest people concealing billions in offshore tax havens

Global investigation gets under way as HM Revenue and Customs acts on leaked data

Rupert Neate and James Ball
The Guardian, Thursday 9 May 2013 16.17 EDT

More than 100 of Britain's richest people have been caught hiding billions of pounds in secretive offshore havens, sparking an unprecedented global tax evasion investigation.

George Osborne, the chancellor, warned the alleged tax evaders, and a further 200 accountants and advisers accused of helping them cheat the taxman: "The message is simple: if you evade tax, we're coming after you."

HM Revenue & Customs warned those involved, who were named in offshore data first offered to the authorities by a whistleblower in 2009, that they will face "criminal prosecution or significant penalties" if they do not voluntarily disclose their tax irregularities, as the UK steps up its efforts to clamp down on avoidance ahead of the G8 summit in June.

The 400-gigabyte cache of data leaked to the authorities is understood to be the same information seen by the Guardian in its Offshore Secrets series in November 2012 and March this year. It reveals complicated financial structures using companies and trusts stretching from Singapore and the British Virgin Islands to the Cayman Islands and the Cook Islands.

The Treasury is working in collaboration with American and Australian tax authorities in the biggest ever cross-border tax evasion investigation, and warned that the alleged evaders may be publicly named and shamed if they fail to come clean and explain their tax affairs.
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It is also investigating more than 200 UK accountants, lawyers and other professional advisers named in the data as advising the wealthy on setting up the elaborate offshore tax arrangements. HMRC declined to name any of the individuals, advisers or companies it is investigating.

An HMRC source said it was first offered a "taster" of the cache in 2009, but received the bulk in late 2010. A spokesman declined to state if it paid a reward to the whistleblower.
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He added: "We know from the data we obtained there are names of people from more than 170 countries. Some are prominent citizens – politicians, celebrities, businessmen, the elite of some societies.

"To have three major tax agencies collaborating – with the possibility of many more doing the same – is potentially a major blow to the secrecy of offshore jurisdictions."
...
David Cameron has pledged to make tackling the "staggering" levels of tax evasion a key priority of the UK's presidency of the G8 this year.

The EU will hold a summit on tax evasion on 22 May. It will be followed by a G8 summit under British chairmanship in June.
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

worcesteradam

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Re: Money Laundering under Government Cover
« Reply #38 on: July 19, 2013, 12:25:30 PM »
http://www.policymic.com/articles/10959/bank-of-america-laundered-drug-cartel-money-according-to-fbi
FBI: Drug Cartels Use Bank of America to Launder Money
Ryan Dahrouge
 6 months ago

An affidavit released by the FBI last month reveals one of Mexico’s most violent narcotic-trafficking drug cartels has been laundering money into the U.S. through accounts with Bank of America.
 
Beginning in or around 2009, members of the infamous Los Zetas cartel had been sneaking drug earnings past federal authorities into Texas and then laundering them through Tremor Enterprises LLC, a horse training and racing business that was run, in part, by José Trevino Morales, a brother of cartel leaders, Miguel Angel Trevino Morales and Omar Trevino Morales.
 
The Morales brothers in Mexico would purchase Quarter Horses, known for their potential in short sprint racing, through transactions from two accounts established at Bank of America. Once the horses were considered in prime racing condition, they were sold cheaply to José Trevino Morales, at which point he could put the horses up for auction. The resulting profit allowed the Morales brothers to disguise their huge drug earnings as legitimate margins.

This scheme hit its peak in September 2010, nearly a year after the Bank of America accounts were opened. Mr. Piloto, one of the horses allegedly bought with cartel money, won the $1 Million first prize at the All American Futurity at Ruidoso Downs, in New Mexico and the winnings were deposited into a Bank of America account owned by Tremor Enterprises LLC. José Trevino then purchased the horse from his brothers for $100,000 and one auction later, the Moraleses could claim a legitimate source for their earnings.
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Since December 2009, Bank of America filings reported an estimated dozen transactions between the two accounts, totaling $1.5 Million.
 
Federal authorities aren’t new to this type of security lapse. Passed in 1970, the Bank Secrecy Act requires banks to report to federal officials suspicious transactions of $10,000 or more; a failure to do so can lead to penalties or prosecution.

In 2010, HSBC’s North American unit’s procedures for money-laundering detection were deemed poor and the company was ordered to improve or face steep penalties.

Similarly in late 2010, the Wells Fargo-acquired bank, Wachovia, was ordered to pay a $160 million penalty when they failed to detect and investigate the use of their accounts by drug traffickers to launder money into the U.S., including a transfer of $378.4 billion, the equivalent of a third of Mexico’s GDP.

Bank of America, it should be noted, is not being charged with any wrongdoing.
 
Oversight like this allows foreign organizations free range for their finances in the U.S., a notion dangerous when applied to even a legitimate industry. Wells Fargo’s penalty was substantial, but it was a mere 2% of their 2009 profits, a year in which they earned $12.3 billion.

Allowing banks to forgo the undoubtedly tedious and expensive task of establishing effective anti-money laundering programs in exchange for a fine when the security lapse comes to the FBI’s attention, possibly in the form of a wealthier cartel member, compromises national security and strengthens networks and industries the Department of Defense has vowed to dismantle.

This latest laundering scheme is evidence of a systematic failure by the banking industry to address the problems in their detection programs and it’s coming at the expense of the safety of the Mexican and American public.


Miguel Trevino just got busted
http://www.bbc.co.uk/news/world-latin-america-23323963
"head of the Zetas cartel"

This must be the boys - 12909 Timothy Ln, Mesquite, TX 75180
http://www.corporationwiki.com/Texas/Balch-Springs/tremor-enterprises-llc/38208712.aspx

Can we locate the ranch...

Online TahoeBlue

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Re: Money Laundering under Government Cover
« Reply #39 on: July 19, 2013, 01:35:56 PM »
Miguel Trevino just got busted
http://www.bbc.co.uk/news/world-latin-america-23323963
"head of the Zetas cartel"

This must be the boys - 12909 Timothy Ln, Mesquite, TX 75180
http://www.corporationwiki.com/Texas/Balch-Springs/tremor-enterprises-llc/38208712.aspx

Can we locate the ranch...

Thanks - search Zetas in Prison Planet Forum  - they seem to be the cowboys at odds with the cia-ms13 but to me they seem to be connected ,  cia-zetas gang .
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5