You can’t argue with that… Police departments are usually not as focused on tackling financial crime as they are on drug dealing and very visible type of crimes that directly affect our feelings of insecurity.

Underground banking is one of the areas that the gangs are exploring; it will help them in their regular ‘ business’  as it will help them in gaining some more money. Credit card fraud is another are. And imagine the network you need to cash in on stolen credit card data. Where do you go as a hacker with a couple of thousand of activated credit cards? Gangs will have the network to have soldiers go to ATM’s and withdraw cash with counterfeit credit cards.

http://fxn.ws/v6c80q

http://online.wsj.com/article/BT-CO-20110915-704594.html?mod=WSJ_qtnews_wsjcomp

http://edition.cnn.com/2011/BUSINESS/09/15/switzerland.bank.lost/index.html

How was 9-11 financed?

To plan and conduct their attack, the 9/11 plotters spent somewhere between $400,000 and $500,000, the vast majority of which was provided by al Qaeda. Although the origin of the funds remains unknown, extensive investigation has revealed quite a bit about the financial transactions that supported the 9/11 plot. The hijackers and their financial facilitators used the anonymity provided by the huge international and domestic financial system to move and store their money through a series of unremarkable transactions. The existing mechanisms to prevent abuse of the financial system did not fail. They were never designed to detect or disrupt transactions of the type that financed 9/11.

….

The best available evidence indicates that approximately $300,000 was deposited into the hijackers’ bank accounts in the United States by a variety of means. Just prior to the flights, the hijackers returned about $26,000 to one of their al Qaeda facilitators and attempted to return another $10,000, which was intercepted by the FBI after 9/11. Their primary expenses consisted of tuition for light training, living expenses (room, board and meals, vehicles, insurance, etc.), and travel (for casing flights, meetings, and the September 11 flights themselves). The FBI believes that the funds in the bank accounts held by the hijackers were sufficient to cover their expenses.The FBI, therefore, believes it has identified all sources of funding. Our investigation has revealed nothing to suggest the contrary, although it is possible that the $300,000 estimate omits some cash that the hijackers brought into the United States and spent without depositing into a bank account or otherwise creating a record.Al Qaeda funded the hijackers in the United States by three primary and unexceptional means: (1) wire or bank-to-bank transfers from overseas to the United States,

(2) the physical transportation of cash or traveler’s checks into the United States, and

(3) the use of debit or credit cards to access funds held in foreign financial institutions. Once here, all the hijackers used the U.S. banking system to store their funds and facilitate their transactions.

The exact details of the financing are still unknown, although main hijacker Atta allegedly received $100k from Ahmed Omar Saeed Sheikh from Pakistan. Unconfirmed rumors were published that Pakistani intelligence agency (ISI) in fact ordered the transfer to Atta. All in all, the exact money trail was never published.

Did we take anti terrorism financing to a level that would prevent the next 9-11? Remember Chairman Kean’s words. And remember 9-11.

http://govinfo.library.unt.edu/911/staff_statements/911_TerrFin_App.pdf

http://en.wikipedia.org/wiki/Ahmed_Omar_Saeed_Sheikh

http://financialcrimeonline.com/archives/33

Technically, the ‘ unfreeze’  is a loan to the Libyan National Transitional Council (NTC), which acts as temporary government in Libya. Of the total funds frozen, $37bn is in the US, $20bn is in Britain and about $7bn is in Germany. All three countries are ready to release the funds as soon as they have clearance from the UN security council. Meanwhile, Germany and the Netherlands have agreed to lend the NTC $144m for its immediate needs, on the understanding that the money will be recouped later from the unfrozen assets.

Libya exported around 160,000 barrels of oil  daily; so paying back the loans will not be a daunting task as soon as things are back to normal. It is also a reminder of the amount of money that Ghadaffi was able to spent in his days. Apparently, under Gadhafi’s reign, Libya sold 20% of its gold reserve. The central bank estimates the proceeds around 1 billion euro. Some of that money is likely not frozen at the moment; it s still being spent by Ghadaffi, financing the struggle in Libya and keeping him out of the legal system. Let’s see how long Ghadaffi can resist the current forces in Libya and stay out of jail with his (or rather: Libya’s) money.

http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/EN/foraff/124204.pdf

http://www.treasury.gov/resource-center/sanctions/Programs/pages/libya.aspx

http://www.timeslive.co.za/africa/2011/08/15/dutch-give-who-gaddafi-s-cash-to-buy-medicine-for-libyans

http://online.wsj.com/article/SB10001424053111903895904576547101159155100.html?mod=WSJEUROPE_hpp_MIDDLETopNews

http://video.cnbc.com/gallery/?video=3000040783

http://www.guardian.co.uk/music/2011/mar/10/50-cent-donate-gaddafi-money

http://www.ft.com/cms/s/0/0b31a390-437e-11e0-8f0d-00144feabdc0.html#axzz1WpIyhrMe

http://www.globalwitness.org/library/hsbc-and-goldman-sachs-held-335m-libyan-state-oil-money

http://www.bbc.co.uk/news/business-13552364

I understand they are meticulously doing interviews with one primary objective driven by the Justice Department on this case, which is to identify and prosecute any individuals within the bank for which the evidence will support such an action. Prosecuting individuals is their number one priority,” the source said on condition of anonymity.

The money laundering investigation is reported to be related to huge amounts of cash accepted by HSBC from casas de cambio (money exchange bureaus). Obviously the concern is that a vast percentage of the cash originated from
Mexican narcotics activity. And that HSBC did not do enough to prevent dirty cash to enter the financial system, or the US for that matter. The OCC put ir like this: “That HSBC had deficiencies with respect to suspicious activity reporting, monitoring of bulk cash purchases and international funds transfers, customer due diligence concerning its foreign affiliates, and risk assessment with respect to politically-exposed persons and their associates.”

HSBC communicated it is under scrutiny and is fully cooperating with the investigations.

http://bit.ly/jCs0zO

http://www.guardian.co.uk/world/2011/apr/03/us-bank-mexico-drug-gangs

What happened with the criminal case against Holenweger ? Not enough evidence, according to the judge. A blow to prosecutors in this high profile case. Details on the Alstom case will follow as they pop up.

http://bit.ly/gigJp3

http://bit.ly/fWoHEB

http://bit.ly/dfiQqA

http://bit.ly/fn1TD3

http://financialcrimeonline.com/archives/875

http://bit.ly/dfiQqA

“The [government] intends in doing so to avoid any risk of embezzlement of Egyptian state property,” a Swiss government statement read. “At the same time, the cabinet calls on responsible authorities in Egypt to comply with the justified demands of the Egyptian people in a quick, credible, participatory and transparent manner.”

Swiss banks have not provided all balance data to the government  so the exact amount that Mubarak holds is yet unknown. Speculations about his wealth vary from $ 3 to 70 billion. Apparently, the Mubarak family accumulated the funds of military contracts during the time that Mubarak was an air force officer.

The RIAA envisages that the Swiss government would only have to show that the funds held in Switzerland by an alleged corrupt official are significantly larger than what someone could have credibly earned in office, and that the country from which the funds originate was known to be corrupt. Then the burden of proving that the money came from legal sources would lie with the allegedly corrupt official, rather than the Swiss state. If the official could not prove a legitimate origin of his or her Swiss assets, they would be confiscated by the Swiss state; ultimately the funds would return to Egypt.

According to the World Bank’s Stolen Asset Recovery initiative estimates, the cross-border flow of proceeds from criminal activities, corruption and tax evasion between $1 trillion and $1.6 trillion per year, about half of which come from the developing and transitional economies.

Since 1997, Swiss banks have been publicly accused of accepting money from dictators like Sani Abacha (Nigerian dictator), Mobutu (President of Congo), Lansana Conte (President of Guinea), Gnassingbe Eyadema (President of Togo), Arap Moi (President of Kenya), Omar Bongo (President of Gabon), Obiang Nguema (President of Equitorial Guinea), Blaise Compaore (President of Burkina Faso), Denis Sassou Nguesso (President of Congo-Brazzaville), Eduardo dos Santos (sitting President of Angola), Sadam Hussein (hanged Iraqi President), Jerry Rawling (Ghana’s dictator), Ferdinand Marcos (Philippines), Baby Doc Duvalier (dictator of Haiti), Raul Salinas (Mexico), Hosni Mubarak (Egypt), Yoweri Museveni (President of Uganda), Augusto Pinochet (late Chilean dictator), Muammar Gaddafi (Libya) and Ibrahim Babangida (Nigerian military ruler) without due diligence and without questioning the source of their wealth.

http://money.cnn.com/2011/02/11/news/international/swiss_banks_mubarak/index.htm

http://www.businessinsider.com/mubarak-swiss-bank-2011-2

http://www.thestatesmen.net/news/swiss-return-of-illicit-assets-act-pakistan-can-get-billions-back/

“The laundering of money is a problem that worsens from day to day because billions of dollars have been laundered and injected into the country’s formal economy over several years,” the senator said during the inauguration Wednesday of the “Seminario Internacional sobre Corrupcion y Lavado de Dinero” (International Seminar on Corruption and Money Laundering).

“This problem has disrupted banking institutions, investment firms and businessmen, and I believe it is time for a good law that will allow us to strike a blow at the finances of organized crime groups,” Navarrete, who serves as coordinator of the Party of the Democratic Revolution, or PRD, caucus in the Senate, said.

http://financialcrimeonline.com/archives/898

http://latino.foxnews.com/latino/news/2011/02/10/money-laundering-reaches-bn-annually-mexico/

http://www.bbc.co.uk/news/10324861

Aside the overall Wikileaks discussion; should we discuss personal (financial) facts in the public domain just to have an opinion and make up our own minds and ‘judge’ ? Or should we trust professionals (like us) and governments to enforce laws?

Wanna bet that civil suits by those persons whose bank accounts will be ‘ revealed’ will follow shortly? Let’s just wait and see what the ‘whistleblower’ has to offer. We will keep you posted. Elmer himself will keep you posted as well; check out his website swisswhistleblower.com

http://www.swisswhistleblower.com/

http://en.wikipedia.org/wiki/Bank_Julius_Baer_vs._Wikileaks_lawsuit

http://news.yahoo.com/s/afp/20110116/bs_afp/switzerlandbritainbankingtaxregulatewikileaks

http://financialcrimeonline.com/archives/838

http://financialcrimeonline.com/archives/773

From the information that surfaced, ‘ Eaglewood’  probably started in 2007 when undercover detectives were following two convicted drug dealers to an unknown individual, who was later identified as Eyad Iktilat. After being arrested, one of them was found to have been carrying over 1,36 million euros in a bag.

Iktilat appeared to be a big fish, with plenty of luxury cars and real estate. Royal Oak Taxis, a rundown, fortified garage and cafe was run by Israeli-born Iktilat.  He was also a director of the nearby Euro Foreign Exchange, through which up to £1m a day in drug money would be laundered.

Iktilat, of Euston, north London, denied counts of money laundering, conspiracy to supply cocaine and cannabis, and possession of cocaine, but was convicted after a five-month trial. Initially jailed for 21 years, his sentence was increased to 30 on appeal. “He did not believe he was doing anything wrong. He believed he was acting as a bank,” said an officer. In two years, an estimated £100m passed through the ramshackle breeze-block taxi building. It was then taken to the bureau de change. There, manager Jean-Claude Frigieri, 56, of West Molesey, Surrey, bought up to €450,000 at a time, sometimes several times a day, from a bank note wholesaler called Interchange, which had no idea about his criminal dealings. He was convicted of money laundering and jailed for 10 years.

The money laundering consisted of buying 500 euro notes at Euro Foreign Exchange with drug money; the first stage in concealing the dirty origin of the money. And a perfect way to reduce the weight and volume of the drug money. Did you hear that Colombian cartels prefer 500 euro notes as payment for supplying cocaine rather than $100 notes?

The Guardian reports that Iraqi refugee Maythem al-Ansari was the main banker. When police swooped on his £3m west London home they had to use a digger and angle grinders to smash through a fortified security wall. He arrived in Britain in 1999 as Mithum Mohammed, later changing his name to al-Ansari, a famous banking name in Saudi Arabia. He worked as a bus driver but swiftly built up a multi-million-pound property empire. By 2004 he was investing in restaurants and vineyards and specializing in properties in Park Lane and Mayfair. The 42-year-old used business links to lend an air of legitimacy, and could exchange large amounts without attracting suspicion, making him the perfect cover for someone to change large amounts of cash into euros.

For a 5% ‘ introduction fee’ criminals could use the money laundering services of the taxi company, being the exchange to 500 euro notes. Details on the use of the notes were not made public, but you can assume they were used to pay for the cocaine on one hand, and used to invest in real estate and other goods for the criminals themselves on the other. Only a couple of criminals actually build up a ‘ legitimate’  business with dirty money. Most of them just try to find ‘clever’ ways to enjoy their lifestyles without being caught in the web…

Among the sentenced was a London ‘hero’ fire fighter, commended for his role in the bombing response, who was going down in the aftermath of the London bombings. He was on sick leave suffering from ‘ stress’ .  Owning two audis and leading a ‘ champagne lifestyle’ , some people had some doubts about the ‘ stress’ . He was however arrested while putting 100 kilogram of cocaine in smaller bags. The drugs had been picked up from a beach in the a coastal town the previous night, having been smuggled from continental Europe on a rigid-hulled inflatable speedboat. Try to talk you out of that one; that must be stressy.

http://www.bbc.co.uk/news/uk-12120309

http://www.bbc.co.uk/news/uk-11930487

http://www.guardian.co.uk/world/2011/jan/05/police-smash-london-drug-gangster-syndicate

http://www.policeprofessional.com/news.aspx?id=11787