uziq wrote:banks as financial institutions launder money for drug cartels and turn a blind eye to incredibly shady purchases through shell companies or property management businesses. it’s all the same rotten system of criminal interests servicing their ill-gained proceeds.
so if banks have been doing it basically out in the open for ages, why does there need to be some high-tech KGB hacker subplot for inaction over bitcoin? nevermind the fact that regulating and punishing banks is 100x easier than trying to track blockchain transactions. why haven’t governments clamped down on HSBC for instance, knowing their dealings with criminals? oh well. better to mutter conspiratorially about russians and jews.
Actually banks hardly do it these days, because it's all too traceable. Sophisticated drug trafficking operations usually collect the cash to send it to some 3rd world country and buy ungodly amounts of gold or other produce there, sending it back to the west and launder it by bringing the 'legal goods' in the market.
very naive. banks are supposed to file a specific sort of form whenever a suspicious transaction takes place, but they sit in piles by the 100 and are seldom audited in any serious way. it’s one of the huge unspoken truths of the industry, like how oil refineries in residential areas still use lethal hydrofluoric acid but relabel it as ‘modified’ to stall off the regulatory bodies. (and said regulatory bodies are capable of giving fines which are teensy in comparison to the profits from, er, money laundering.)
the U.K. has only recently introduced a novel law whereby any large purchases or assets can be seized if the owner can’t provide transparent book-keeping. and that is seldom used and has only been in force for 1-2 years now. the vast majority of it, like all the drugs whizzing around in your postal system, goes unchecked.
Larssen wrote:Sophisticated drug trafficking operations usually collect the cash to send it to some 3rd world country and buy ungodly amounts of gold or other produce there, sending it back to the west and launder it by bringing the 'legal goods' in the market.
lol. because going to 3rd world countries with hundreds of millions of dollars in cash to buy gold bullion is totally discreet and reliable. drug dealers love filing customs and paying tax! i haven't heard about money launderers buying gold since the vatican stopped funding the IRA.
The DoJ said that the bank [HSBC] had laundered at least $881 million in money for Mexican and Colombian cartels, and another $660 million in sanctions-avoiding transfers with Iran, Cuba, Sudan, Libya and Burma. Some of the details concerning the drug money were lurid. Drug dealers deposited hundreds of thousands of dollars in cash at HSBC in Mexico, and to facilitate matters, even designed special boxes to hold the cash that made an exact fit with the holes in the bank tellers’ windows. As part of the deferred prosecution deal, the bank agreed to have an independent monitor inside the bank, checking on its compliance, for the next five years – an unprecedented arrangement for a British bank. Also unprecedented was the size of the fine: $1.92 billion.
https://insightcrime.org/news/analysis/ … e-collars/
Through Mexico’s Access to Public Information Law, Quinto Elemento Lab obtained the comprehensive files prepared between 2007 and 2012 by the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores – CNBV) which, across more than 20 volumes and some 10,000 pages, established how HSBC Mexico’s top management committed serious mistakes, such as:
- Deliberately failing to report suspicious transactions.
- Permitting the exponential growth of bulk dollar shipments on armored trucks bound for the US.
- Deliberately delaying the issuance of client reports with unusual and suspicious transactions.
- Maintaining business relationships, until the last possible moment, with people, businesses and currency exchange houses used by drug traffickers to acquire aircraft.