United States banks' key role in Mexico's drug gangs and dirty money

[Judi Lynn]

Source: Bloomberg

Originally published Saturday, August 7, 2010 at 8:58 PM
United States banks' key role in Mexico's drug gangs and dirty money

Behind the carnage in Mexico is an industry that supplies hundreds of tons of cocaine, heroin, marijuana and methamphetamines to Americans. The cartels have built a network of dealers in 231 U.S. cities from coast to coast, taking in about $39 billion in sales annually.

By Michael Smith
Bloomberg News

Just before sunset on April 10, 2006, a DC-9 jet landed at Ciudad del Carmen, 500 miles east of Mexico City. As soldiers on the ground approached the plane, the crew tried to shoo them away, saying there was a dangerous oil leak. So the troops grew suspicious and searched the jet.

They found 128 black suitcases, packed with 5.7 tons of cocaine, valued at $100 million. The stash was supposed to have been delivered from Caracas to drug traffickers in Toluca, Mexican prosecutors later found. Law-enforcement officials also discovered something else.

The smugglers had bought the DC-9 with laundered funds they transferred through two of the biggest banks in the U.S.: Wachovia and Bank of America. This was no isolated incident. Wachovia, it turns out, had made a habit of helping move money for Mexican drug smugglers. Wells Fargo, which bought Wachovia in 2008, has admitted in court that its unit failed to monitor and report suspected money laundering by narcotics traffickers.

The admission came in an agreement that Wachovia struck with federal prosecutors in March, and it sheds light on the role of U.S. banks in contributing to Mexico's violent drug trade.


Read more: http://seattletimes.nwsource.com/html/businesstechnology/2012391309_drugmoney01.html

[DURHAM D]

1. Interesting - both banks headquartered in Charlotte, North Carolina.

[OHdem10]

2. A few years back during the Columbian rise to power in Drug

Trade, Senator J. Kerry had some of the most interesting
hearings on the Drug Trade--USA Columbia. The "Chief
Financial Officer for Medelien(Sp?) Cartel (Harvard
Business School Graduate and American) testified that
once weekly he flew into NY bringing large brief cases
of cash into Chase Bank for laundering.

The closer he came to possible Government connections--
Guns down to Colombia and Drugs in same airplane back
to U.S.---the committee got shut down.

This Drug Trade is an old and complex story.

[Oldenuff]

3. Uh-huh

I suppose the next thing they will want us to believe is that the CIA has been smuggling drugs for a loooong looooong time.(and that is probably why there hasn't been any movement to re-access the War on <some> Drugs).

:sarcasm:

[Downwinder]

4. Banco Nacional de Mexico (now part of Citi) vs. Narco News

http://narconews.com/docs/ontrial.html

[Electric Monk]

5. I'm SHOCKED! SHOCKED, I tells ya!

http://www.youtube.com/watch?v=LYOVQezWaCY

[Downwinder]

6. "Operation White Tiger".

http://www.customscorruption.com/white_tiger/operation.htm

[Name removed]

7. Deleted message

Message removed by moderator. Click here to review the message board rules.

[defendandprotect]

8. The Drug War is a tremendous part of corruption in America -- including government officials --!!

I'd also suggest Swiss Bank accounts are a threat to our democracy!

[Bobbieo]

9. This is why marijuana HAS to become legal in the US.

[indepat]

10. Geez, wonder if Wachovia (Wells Fargo) and BofA paid the maximum monetary fines

and if the responsible employees were criminally prosecuted to the maximum extent under the law: or if, instead, just a few hands were slapped a bit? :P

[RB TexLa]

11. How about the banks just treat money as money. Why should they have to do law enforcement's job

I wouldn't report anything to them. I'd just say I didn't think it was suspicious.