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[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.

ASA ACTION: Pursuing the Truth about Medical Marijuana FEDERAL: DEA Interfering with Medical Marijuana Dispensaries OREGON: Feds Escalating Investigation of Patients CALIFORNIA: Merced Patient Wants Seized Property Back CALIFORNIA: Implementation Around the State CALIFORNIA: Dispensary Debates Continue RESEARCH: Biased Reporting Skews Findings -------------------------------------------------------------------------------- ASA ACTION: Pursuing the Truth about Medical Marijuana When ASA petitioned to correct misinformation about medical marijuana spread by the federal Department of Health and Human Services and the Food and Drug Administration, the agencies stalled for two years and then refused to respond. So ASA filed suit to force the issue. The judge hearing the case has indicated that ASA may be able to make the government respond, but may have no legal recourse to correct the false information. Yet the law says federal agencies must rely on sound science in the information they disseminate, so ASA will first try to get an answer. And if that answer does not acknowledge the consensus of doctors and scientists about the medical efficacy of marijuana, there will be an appeal. Suit Over Pot's 'Benefit' Stumbles by Matthew Hirsch, The Recorder (CA) An Oakland, Calif.-based nonprofit can't put the federal government on trial for saying that marijuana has no medical use -- but it might get to challenge the government for blowing deadlines, a federal judge in California ruled last week. Americans for Safe Access sued in February after two federal agencies refused to alter government-published statements saying marijuana has "no currently accepted medical use in the United States." -------------------------------------------------------------------------------- FEDERAL: DEA Interfering with Medical Marijuana Dispensaries In the week after the coordinated raids on medical marijuana dispensaries in Los Angeles, editorial pages and patient protests around the state have denounced the interference with state and local handling of public health matters. Collusion between the DEA and rogue elements of the LAPD is being investigated, and local officials are calling for changes in the law. Feds, LAPD freeze Berkeley pot club's assets by Paul T. Rosynsky, Oakland Tribune A city-sanctioned medical marijuana dispensary had its assets frozen this week, prompting some city council members to call for new city laws protecting such businesses. Berkeley medical pot club raided by Carolyn Jones, San Francisco Chronicle The Los Angeles Police Department and the U.S. Drug Enforcement Agency seized the assets of a Berkeley marijuana club Tuesday, following a raid of its sister club in Los Angeles. Backers of medical marijuana protest raids by John Asbury, Press-Enterprise (CA) Medical-marijuana advocates staged a protest in front of the federal Drug Enforcement Administration building in Riverside on Friday to oppose recent raids on Southern California distributors. DEA's Scarlet Letter by Celeste Fremon, LA Weekly The DEA and the City of Los Angeles are at war over medical marijuana. On one side of the fight is the Drug Enforcement Administration, which seems to be doing all within its power to shut down the 180 or so medical-marijuana collectives (as dispensaries are called) in Los Angeles County. COMMENT Only Congress can resolve pot battle EDITORIAL, Daily Breeze (CA) In 2005, the Supreme Court ruled that medical marijuana users could be federally prosecuted, though the court did suggest that supporters of medical marijuana could lobby Congress to change the law. That's where municipal leaders who support regulating medical marijuana at the local level should place their energies. Federal intervention EDITORIAL, Los Angeles Daily News Feds, back off. That's what the Los Angeles City Council and medical marijuana advocates hope will happen by adopting a moratorium on new dispensaries and bringing current ones into compliance while stricter rules are written. Why Don't More Republicans Oppose the DEA's Medical Marijuana Raids? by Jacob Sullum, TownHall.com Last week, the Los Angeles City Council voted for a measure that asked the federal government to stop harassing medical marijuana users in California. Minutes later, the Drug Enforcement Administration raided 10 medical marijuana dispensaries in Los Angeles County. Fed's medipot raid priorities are out of whack by Thomas Elias, Columnist, San Gabriel Valley Tribune (CA) There's something almost idiotic about the obviously confused and misguided way in which federal authorities are trying to enforce anti-marijuana laws in California today. DEAsy Pickings by Dan Bernstein, Columnist, Press-Enterprise (CA) I never realized the Drug Enforcement Agency gets the summer blahs, just like everybody else. But I happened to be talking with a friend who knows all about this stuff. DEA thwarts Montana's medical marijuana law by Robin C. Prosser, OpEd, Billings Gazette (MT) Five years ago, I starved myself to bring attention to the plight of the sick in Montana that need medical marijuana. Two years later, I worked hard on the campaign for our state medical marijuana initiative, which passed with more support than any other.