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Financial Corruption

WikiLeaks: Is Argentina Washing Dirty Drug Trafficking Money? (Opinion)

Need more evidence of the futility of the war on drugs? Look no further than a WikiLeaked cable from the U.S. Embassy in Argentina released last week. It turns out that for all the happy talk about international cooperation to combat money laundering, the embassy believes some politicians may not really be interested.
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Chronicle Book Review: Mexico on the Brink

Journalist and Mexico resident has Robert Joe Stout has written a new book about the "landmines" facing Mexico, including the drug war and official corruption. It couldn't be more timely.
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HSBC Bank Admits Cartel Money Laundering

HSBC Bank has admitted laundering at least $881 million in drug cartel proceeds in a plea agreement with federal prosecutors that has resulted in the forfeiture of more than a billion dollars.
Spanish-language infographic from the Mexican Institute for Competitives marijuana legalization report
Spanish-language infographic from the Mexican Institute for Competitives marijuana legalization report

Marijuana Votes Have Mexicans Talking Legalization

With US public support for marijuana legalization now at the 50% mark, and state legalization efforts now starting to come to fruition, people are naturally talking about it.

Javier Sicilia addressing conference, with translator Ana Paula Hernandez (photo courtesy HCLU, drogriporter.hu/en)
Javier Sicilia addressing conference, with translator Ana Paula Hernandez (photo courtesy HCLU, drogriporter.hu/en)

Mexico's Symbol of Drug War Resistance Says It's Our Fight, Too [FEATURE]

A panel at the International Drug Policy Reform Conference last week called on Americans to take action to help end the drug war in Mexico, even as Human Rights Watch releases as a damning report on government killings, tortures, and disappearances in the drug war.

Drug Dealer's Bill of Choice Boosts the Euro Zone

Gangsters, drug dealers and money launderers are playing their part in helping shore up the financial stability of the euro zone. Willem Buiter, chief economist at Citigroup, says that high-denomination euro bank notes, in particular the €200 and €500 bills, are increasingly "making the euro the currency of choice for underground and black economies, and for all those who value anonymity in their financial transactions and investments."

American Express Coughs Up $55-$65 Million For Drug-Related Forfeiture

[Courtesy of DEA] News Release FOR IMMEDIATE RELEASE August 6, 2007 American Express Bank International Enters Into Deferred Prosecution Agreement And Forfeits $55 Million To Resolve Bank Secrecy Act Violations AUG 6 -- WASHINGTON ­ Miami-based American Express Bank International has entered into a deferred prosecution agreement on charges of failing to maintain an effective anti-money laundering program and will forfeit $55 million to the U.S. government, Assistant Attorney General Alice S. Fisher of the Criminal Division and U.S. Drug Enforcement Administration Administrator Karen Tandy announced today. A criminal information filed today at the U.S. District Court for the Southern District of Florida in Miami charges American Express Bank International with one count of failing to maintain an effective anti-money laundering program. American Express Bank International waived indictment, agreed to the filing of the information, and accepted and acknowledged responsibility for its behavior in a factual statement accompanying the information. The company will pay $55 million to the United States to settle forfeiture claims held by the government. In light of the bank¹s remedial actions to date and its willingness to acknowledge responsibility for its actions, the government will recommend the dismissal of the charge in 12 months, provided the bank fully implements significant anti-money laundering measures required by the agreement. ³Banks and other financial institutions must uphold their responsibility to safeguard financial markets from the illegal activities of international drug cartels and professional money launderers,² said Assistant Attorney General Alice S. Fisher of the Criminal Division. ³An effective anti-money laundering program is critical to law enforcement efforts to detect and cut off the flow of drug money. The Department of Justice will continue to work to stop financial institutions from knowingly disregarding their obligations to have these vital programs in place.² ³Today an established and respected financial institution learned a valuable lesson about its legal responsibilities. American Express and all legitimate banking organizations must take every step possible to avoid becoming entangled in the web of international drug money laundering,² said DEA Administrator Karen P. Tandy. ³Today the message is loud and clear: due diligence-don't take money without it.² The Financial Crimes Enforcement Network (FinCEN) has also assessed a $25 million civil money penalty against the company for violations of the Bank Secrecy Act, and the Board of Governors of the Federal Reserve has assessed a $20 million civil money penalty. The $20 million Federal Reserve penalty and $15 million of FinCEN¹s $25 million penalty will be deemed satisfied by the payment of the $55 million forfeiture, resulting in total payments of $65 million by American Express Bank International under these settlements. Under the Bank Secrecy Act, banks are required to establish and maintain an anti-money laundering compliance program that, at a minimum, provides for: (a) internal policies, procedures and controls designed to guard against money laundering; (b) the coordination and monitoring of day-to-day compliance with the Bank Secrecy Act; (c) an ongoing employee training program; and (d) independent testing for compliance conducted by bank personnel or an outside party. Banks are also required to have comprehensive anti-money laundering programs that enable them to identify and report suspicious financial transactions to the U.S. Treasury Department¹s Financial Crimes Enforcement Network. The case was prosecuted by Trial Attorneys John W. Sellers and Thomas Pinder of the Criminal Division¹s Asset Forfeiture and Money Laundering Section, which is headed by Chief Richard Weber. This case was investigated by the Drug Enforcement Administration¹s Miami Field Division, Fort Lauderdale District Office.

Charles Bowden on Mexico's Dirty War Against Drugs

democracynow.org has an excellent Charles Bowden discussing human rights violations in the drug war in Mexico. One interesting quote: "Trying to eradicate the drug industry in Mexico is like trying to eradicate gambling in Las Vegas. It is the economy". Summary below.
Democratic Senator Patrick Leahy blocked the release of a State Department report affirming that Mexico has respected human rights in its fight against drug cartels. Leahy’s move holds up more than $100 million in US aid. The money has been delayed under a law linking 15 percent of US funding to Mexico under the Merida Initiative to Mexico’s record on human rights. On Monday, President Obama praised the Mexican government for its handling of the drug war. We speak with Charles Bowden, a reporter who has been extensively covering the human consequences of Mexico’s drug war. [includes rush transcript]