“Dark Alliance” 2.0: The Federal Reserve, Wall Street and the Laundering of Drug Money

Although journalists and researchers have spent decades documenting the links between secret state intelligence agencies like the CIA and organized crime conglomerates who butter their bread through global narcotics rackets, the role of major financial institutions in the grisly trade continues to be relegated by corporate media to the realm of “conspiracy theory.”

But in the wake of rising public anger over the Obama administration’s collusion with Wall Street drug banks, we were informed by The New York Times that the “Federal Reserve hit Citigroup with an enforcement action on Tuesday over breakdowns in money laundering controls that threatened to allow tainted money to move through the United States.”

According to the Times, the Federal Reserve “took aim at Citigroup and its subsidiary Banamex USA over failure to monitor cash transactions for potentially suspicious activity.”

The Fed’s Consent Order charged that Citigroup and Banamex USA “lacked effective systems of governance and internal controls to adequately oversee the activities of the Banks with respect to legal, compliance, and reputational risk related to the Banks’ respective BSA/AML [Bank Secrecy Act/Anti-Money Laundering] compliance programs.”

An unnamed bank spokeswoman told the Times, “Citi has made substantial progress in a comprehensive manner across products, business lines and geographies,” and will continue “to take the appropriate steps to address remaining requirements and build a strong and sustainable program.”

Nothing to see here, right?

Tellingly however, neither Citigroup nor Banamex USA admitted wrongdoing. In what is standard boilerplate in such agreements, the Fed meekly submitted that their “enforcement action” was issued “without this Order constituting an admission or denial by Citigroup of any allegation made or implied by the Board of Governors.” Nor did the Fed “give specific examples of problems” at either bank, Reuters reported.

During Senate Banking Committee hearings last month, Senator Elizabeth Warren (D-MA) grilled federal banking regulators over their non-prosecution of Wall Street drug banks.

Referencing penalties levied against HSBC after the British banking giant was caught red-handed laundering billions of dollars for Colombian and Mexican drug cartels, Warren demanded: “What does it take? How many billions of dollars do you have to launder for drug lords” before a criminal prosecution?

Judging by the actions of Obama’s Justice Department, apparently the sky’s the limit. …

http://www.globalresearch.ca/dark-alliance-2-0-the-federal-reserve-wall-street-and-the-laundering-of-drug-money/5330215

Leave a Reply