THE CALI CARTELWIDE VARIETY OF METHODS, INSTITUTIONS, AND INDIVIDUALS TO MOVE, LA'JKUEK, AND INVEST ITS FUNDS. LAW ENFORCEMENT AND INTELLIGENCE SOURCES HAVP IDKHTtriED COLOMBIAN COCAINE ACCOUNTS IN HUNDREDS OF BANKS ABOUND THE WORLD. FUNDS REACH THESE ACCOUNTS THROUGH ANY COMBINATION OF EXCHANGE HOUSES, BROKERAGE FIRMS, PRECIOUS METALS DEALERS, INSURANCE COMPANIES, AND INTERNATIONAL TRACE COMPANIES. |
THE CALI CARTEL GENERALLY DOES BUSINESSUMBER OF INDEPENDENT MONEY LAUXDIPERS MHO RESIDE IN COLOMBIA, NEVER COKE IN OOVnCT KITH THE DRUGS, AND PROBABLY RARELY HANDLE BUIJC CASH. LAW ENFORCEMENT AND INTELLIGENCE REPORTING INDICATES THAT THE MONEY LAUNDERERS GENERALLYOMMISSION RANGINGOERCENT. THE COMMISSION IS DETERMINED BY SUPPLY AND DEMAND ANDHE BISK ASSOCIATED XITH THE TRANSACTIONS. THE LOWER COMMISSIONS MAY COVER MOVINGARS OUT OF THE UNITED STATES OR INANCIAL INSTITUTION. THE HIGHER COMMISSIONS PROBABLYOMPLETE LAUNDERING CYCLE THAT RETURNS "CLEAN" HONEY TO THE
IMPROVING SECURITY AND SOPHISTICATION
COLOMBIAN HONEY IAUNDERKRS HAVE IMPROVED THE SECURITY AND SOPHISTICATION OF THEIR TRANSACTIONS IN THE LMT FEW YEARS IN RESPONSE TO INTENSIFIED COUNTEKNARCOTICS EFFORTS III THE UNITED STATES AND ABROAD. THE CARTEL IS INSULATED BY THE EXTENSIVE USE OF OPERATING CELLS THAT LIMITS THE ACCESS AND KNOWLEDGE ANY ONE KEM3ER CAN GAIN ABOUT THE OPERATION.EW OUTSIDE THE PRINCIPALS KNOW ALL THE KEY ELEMENTS. ELL, HOWEVER, THE BOSS MAINTAINS DETAILED BUSINESS LEDGERS TO TRACK THF COCAINE AND THE MONEY, ACCORDING TO SEIZED RECORDS.
THE CARTEL'S MONEY LAUNDERERS ARE FORTIFYING THEIR FINANCIAL DF.rENSES WITH AN ARRAY CF TACTICS THAT INVOLVE BOTH HUMAN AND
SOURCES,
CARTEL TOES ALMOST ALL OF ITS BUSINESS USING LAYERS OF FRONT COMPANIES AND PEOPLE, CHANGES ACCOUNTS AND NAMES REGULARLY. AND MOVES MONEY WORLDWIDE.
--THE LAUNDERERS USE NUMEROUS ACCOUNTS AT MANY DIFFERENT BANKS AND AVOID LEAVING LARGE BALANCES SITTING IN ANY ONE ACCOUNT.
LAUNDERERS USE MANY OF THE MOST SOPHISTICATED FINANCIAL INSTRUMENTS AVAILABLE TODAY.
THH LAUNDERERS FACILITATE THFIH BUSINESS WITH STATE-OF-THE-AR"
NOFORN,NOCONTRACT.ORCON gECMB
COMMUNICATIONS EQUIPMENT, INCLUDING COMPUTES KOD;MS ATTACHED TO FACSIMILE MACHINES. SATELLITE PAGERS, MOBILE TELEPHONES. AND TELEX, ACCORDINGARIETY Ol" REPORTING- COMMUNICATIONS SECURITY INCLUDES THE USE OF CALL SIGNS AND NICKNAMES AS WELL AS DIFFERENT TELEPHONES, TELEPHONE NUMBERS. AND RACIOFREQUENCIES, ALL OF WHICHFTEN.
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FUNDAMENTALS OF DRUG MONEY
THE SCOPE AND COMPLEXITY OF MONEY-LAUNDERING SCHEMES DEPEND ON TUB TRAFFICKER'S RESOURCES AND PERCEPTION OF THE THREAT TO HIS WEALTH. ALMOST ALL LAUNDERING OPERATIONS, HOWEVER, EAK DOWN INTO THREE FUNDAMENTAL STAGES: CURRENCY PIACEHEKT, LAYERING, AND INTEGRATION.
placement
while money laundering is becoming hope sophisticated, trafficking orgam:7at:on5 continuehysically smuggle large ouancities op their narcoprofits out of the united states as cash, checks, and money orders. such smuggling operations areandigher risk of loss or seizure than the mors sophisticatpd laundering schemes, but the pressure the us government has placed on financial- institutions to report large cash transactions ppcbarly forces thecf some bulk shipments. in the case of cash, traffickers face ccnsiderablf logistic problems ik managing bulk shipments. every kilogram (kg) of cocaine sold in the united states "arms as hochg of currency.
SMUGGLING METHODS VARY WIDELY AND INCLUDEETWORK Of TRUSTED TO CARRY CURRENCY IN SUITCASES; CONCEALING CHECKS OR MONEY ORDERS IN CLOTHING; OSING EXPRESS MAIL SERVICES; AND HIDING CASH IN OUTBOUND GOODS SHIPMENTS, SUCH AS FURNITURE OR TELEVISION SETS. IN ONE SCHEME IN THE, FEDERAL AGENTS IN MIAMI SEIZED MORE THANILLION AWAITING SHIPMENT TO COLOMBIA IN MICROWAVE OVENS THAT HAD BEEN REMOVED 'ROM THEIR ORIGINAL CARTONS, GUTTED, FILLEDNET. REASSEMBLED, AND PLACED IK THE
MONEY LAUNDF.REflS PREFER PLACING THEIR MONEY R BUYING GOLD OR OTHER BIG-TICKET ITEMS AS QUICKLYTHE BEST MONEY LAUNDERESS
:MONEY fh'TT^ftTIrH&TOTDNTS ANYWHERE IN THE WORLD IN
AS FEW AS flR HOURS FROM THE TIME THE CASH IS EXCHANGED ON THE
tract
one of lfll host jikzct.iays to place drug money into us banks while avoiding the legal reporting requirements oh transactionsp kobe isreakinc down large sums of honey into smaller deposits. colombianunderers make widespread use of this method with both us bank accounts and with money orders purchased at us post offices, supermarkets, amd drugstores, according to law enforcement :nvestigations.
colombian txah'-ckeps use currency exchange houses all over the
i the
taffickers and xkints or issue >or? and deposit ie, "casas de colombia and is
world to launder their funds,
exchange houses accept us dollar drug cash fro either hire transfer the funds to foreign bank checks that tke traffickers can more easily tr into banks. often referred to by their spanishhese exchange houses are widespread venezuela near the colombian border. they vary in sizeingle moneychanger on the street to large, multifunction institutions handling millions ofonth. large or small, exchange
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drug money has entered the financial system, the launderer will layer iteries of transactions designed to conceal its criminal origin. favorite offshore banking centers continue toanamajhe netherlands antilles, the bahamas, and the cayman islands. ^believes that there ka5a-top increase Ui wire transferstjf drug collars from JS banks to colombian banks and a
NTRACT.ORCON
:
iwtegpacion
when the trafficker is satisfied that the money launderer has sufficiently distanced the money from its illegal origin, he must, like any investor, decide what to do with it. ideally, the money's integration back into normal financial activities should make it available for either operational expenses or to support his lifestyle, as well as provide some plausible explanation for tjie
rodriguez owned at s'i two banks thai ee used to launder money. that colombian narcotics chieftains secretly owncontrol over other financial institutions is high.they use banco cafetero, banco de bogota, banco dede occidents, and banco ganadero extensively for
cali traffickers kave. for the most part, been able togovernment controis on money movement and have in investing ': 0mbia and in othe3
countries. the absence of legislation criminalizing money laundering and inadequate enforcement resources in colombia seriously handicap the fight against money laundering. the series of raids that began ik1 on cali cartel financial targetsotentialfor change, however. colombian president cesar gavista has made good on his stated intention to crack down on the cali cartel. the raids on their own turf, blocking for the first timef their colombian bank accounts, and synchronized law enforcement action in the united states represent am unsettling new development fop the ins. |
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the cali raids
colombian authorities, assisted by the us drug bnfc3cskent administrationeries of raids on1 ik bogota, 3arranquilla, and cali on trafficker financial centers. the raids resulted in the arrest of two major colombian money launderers and the identification of moreuspect banx accounts in
mope than ioo hanks in Germany, panaka, grand cayman, the -hited
kingdom, canada, and the united states. the colombian national police, ik an unexpected move, blocked someolombian bank accounts using an old law pertaining to "unexplained in the seven days following the first paid, us authorities impounded
MORSILLION IN CASH, GOLD, AND BANK ACCOUNTS, AND THE UNITED KINGDOM IMPOUNDED OVERILLIONONDON BANK ACCOUNT.
IN THE WAKE OF THE RAIDS, THE DEA AND OTHER US LAM ENFORCEMENT AGENCIESLOWING IN THE FLOW OF COCAINE REVENUES FROM THE UNITED STATES BACK TO COLOMBIA. THIS HASACKUP OF REVENUES IN THE UNITED STATES AND HAS FORCED TRAFFICKERS TO PAY HIGHER PEES TOR MONEY-LAUNDERING SERVICES. HOWEVER, US OFFICIALS NOTE THAT THE CARTEL -IAS ALREADY REPLACEC TKE HONEY MANAGERS THE RAIDS. |
CALI KONE: LAUNDERERS HAVE PROVED TO BE ADEPT AT EXPLOITING LAXITY IN FINANCIAL REGULATIONS WORLDWIDE AND FLEXIBLE IN RESPONDING TO ANTI-MONEY-LAUNDERING DEVELOPMENTS. WE EXPECT THEY WILL GRADUALLY EXPAND THEIR OPERATIONS IN LESS REGULATED BANKING CENTERS OUTSIDE EUROPE AND THE AMERICAS; ASIA SEEMS THE MOST INVITING LOCATION. FURTHER, ME BELIEVE THE LAUNDERERS WILL INCREASINGLY TURN TO NONBANK FINANCIAL INSTITUTIONS, SUCH AS CURRENCY EXCHANGE HOUSES, IMPORT-EXPORT FIRMS, AND INSURANCE COMPANIES, WHICH HAVE FOCUSED RELATIVELY LITTLE ATTENTION ON MONEY LAUNDERING. FINALLY, WS EXPECT TO SEE NEW
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