Blog dedicated to reporting on Mexican drug cartels
on the border line between the US and Mexico

Thursday, July 12, 2012

Narcos Stake in the U.S.?- One Trillion Dollars

Borderland Beat

"Recent media reports of money laundering activities involving U.S. banks and Mexico’s drug cartels point to a disturbing trend.  Everything taken into account, the amounts involved rival investments made by some of the U.S.’s largest trade partners. If these funds were seen as foreign direct investments, Mexican drug cartels would surpass Switzerland, the United Kingdom and Japan as having a stake in the U.S. economy."

(The BMPE One of Many Ways Narcos Launder Money)
The six-year War on Drugs that Mexican president Felipe Calderon has waged since 2007 has resulted in one consequence no one anticipated: Mexican drug cartels have sent upwards of $1 trillion to the U.S.

This staggering sum of money has been funneled through U.S. financial institutions, almost always in violation of U.S. laws, and at times even with the cooperation of American federal agencies.

In fact, if the Mexican drug cartels were a sovereign nation, they would qualify to be part of the G-20, ahead of Indonesia (GNP: $845 billion) and behind South Korea (GNP: $1.1 trillion). Yet, this is the cumulative sum of money that Mexican drug cartels have funneled through the U.S. economy.

A Story  published last month reporting that federal authorities busted a cartel boss accused of laundering $1 million a month pales in comparison to the hundreds of billions of dollars that drug organizations have moved through U.S. banks.

Similar to the BMPE
Who cares about a $12,000,000 a year operation when one American bank was found to have laundered $378,400,000,000 before it was caught? After federal prosecutors started criminal proceedings against the bank, it agreed to hand $110 million over to federal authorities, for allowing banking transactions with proven connections to drug smuggling operations. And the same bank subsequently paid the government a $50 million fine for failing to monitor cash used to ship 22 tons of cocaine.

In other words, the bank paid $160 million to make the case go away. No bank official was ever charged with a crime, and the monies ended up dispersed throughout the United States.

The bank? Wachovia. The year? 2010.
“The [American] authorities uncovered billions of dollars in wire transfers, traveler's checks and cash shipments through Mexican exchanges into Wachovia accounts,” Ed Vulliamy reported in the Guardian of London on April 2, 2011. “Wachovia was put under immediate investigation for failing to maintain an effective anti-money laundering program… Criminal proceedings were brought against Wachovia, though not against any individual, but the case never came to court.”
In March 2010, Wachovia settled in what became the biggest action brought under the U.S. bank secrecy act, through the US district court in Miami.

Wells Fargo acquired Wachovia in October 2008 as part of the banking consolidation after the real estate market bubble burst.
Wachovia is not alone in laundering hundreds of millions of dollars for Mexican drug lords. American Express Bank International is believed to have laundered more than $100 million, paying a fine of $14 million in 1994 and another fine of $65 million in 2007. American Express Co. subsequently sold that bank to the London-based Standard Charter PLC in 2008.

Western Union is also in on the action. In February 2010 Western Union agreed to pay $94 million in fines in order to avoid prosecution for money laundering. The sum believed to have been laundered? More than $250 Billion.

Of course, the U.S. government is part of this money laundering enterprise.

“Undercover American narcotics agents have laundered or smuggled millions of dollars in drug proceeds as part of Washington’s expanding role in Mexico’s fight against drug cartels, according to current and former federal law enforcement officials,” Ginger Thompson reported in the New York Times in December 2011.

“The agents, primarily with the Drug Enforcement Administration, have handled shipments of hundreds of thousands of dollars in illegal cash across borders, those officials said, to identify how criminal organizations move their money, where they keep their assets and, most important, who their leaders are. They said agents had deposited the drug proceeds in accounts designated by traffickers, or in shell accounts set up by agents.”

And so it goes.

The result is that, if these funds were seen as foreign direct investments, Mexican drug cartels would surpass Switzerland, the United Kingdom and Japan as having a stake in the U.S. economy.
The driving force behind the push to launder drug proceeds through the U.S. banking system is driven by tough new laws in Mexico that seek to limit the ability to carry out cash transactions. “The new laws [put in place in 2010] would also limit the purchase of vehicles, boats, airplanes and luxury goods to 100,000 pesos in cash, or about $7,700.
Violators could be sentenced to five to 15 years in prison,” William Booth reported in the Washington Post  “Criminals here are increasingly using cash transactions to launder their vast profits, according to a senior Mexican official who investigates financial crimes but spoke on the condition of anonymity because of security protocols.”

Since then, additional laws have made it difficult to deal in cash. Mexican banks will not accept dollars, unless a person has a bank account at that institution. And then customers are required to deposit the dollars, which are then converted to pesos and credited to their peso-accounts. Similarly, it’s no longer possible to walk in with Mexican pesos and buy U.S. dollars, unless the customer has an account at the bank.
Foreign tourists are limited to exchanging no more than $1,500 USD a week, and then they have to provide a copy of their passports. If they wish to engage in larger transactions, they have to open a bank account, or execute wire transfers from their own institution in the U.S. Most tourists simply use ATM machines to withdraw cash, or use their credit cards.

This process of frustrating cash transactions is the impetus for drug organizations to shift their financial operations to the U.S. where, once the monies have entered the U.S. banking system, they can purchase homes, airplanes, businesses, and weapons. Indeed, in one astonishing incident, several operatives attempted to purchase military weapons for the cartels.

The Videos below demostrates the weapons on the narco list

Stinger Surface to Air Missile

Another weapon on the narco shopping list Dragon-Fire Anti Tank

According to CNN , the shopping list included, “a Stinger surface to air missle at a negotiated price of $200,000; a Dragon fire anti-tank weapon for a cost of $100,000; a Law Rocket anti-tank weapon for $20,000; and two AT-4 recoilless anti-tank guns for $20,000.

The indictment  says the defendants were to pay with some cash and also with illegal drugs.” (Meth was given as a "down payment")

None of that would have been possible in Mexico, which now requires that transactions valued at more than $10,000 USD be done by check, not cash.

The U.S., of course, is completely different.

Editing: Photos-Videos-hyperlinks added by Chivis


  1. In the U.S. ANY transactions over $10,000.00 are reported directly to the IRS!

    1. Hey moron investigate more before u post your ignorant response. That only applies to financial institutions. You can go out and buy a Rolls-Royce Phantom from a private party for $300,000 and there is no IRS reporting required.

  2. @8:05; AND that law has been in place for about 30 years. So no telling where the author got that information about the USA.

  3. I wonder what that clown who now and then post with "is that you again?" will say about this. Oh yeah, he'll probably say the above is written by an agent of the Illuminati and go on with his usual drug induced rants.

  4. And we blame Mexico for all the problems, when we have the most important root of drug trafficking here in the USA. Time to fight white collar crime as harsh as we fight blue collar crime.
    Lets stop.being.hypocrites.
    In Mexico they call it.Corruption. IN the USA WE CALL IT.LOBBYING..WHICH ONES IS LEGAL ?

  5. wow aint that sum shit, so the banks get away with it cuz they threw sum money at the government to make it go away. werent all the banks begging for government help and the government like a bunch of dumbasses gave it to them. starting to look alot more like government coruption to me.

  6. There is the truth guys the U.S. is one of the biggest cartels out there as well, we catch banks doing this sort of stuff and simply get paid off to not prosecute? Sound like the same kind of corruption like in Mexico.......I guess its just not as exposed here.

  7. " Narco genera economia "
    So true, despite lives being lost and for a very pathetic cause. It isn't going to stop anytime soon. Too much greed on both sides of the border. Accept it and don't be ignorant.

  8. Someone is exaggerating a little. 1 trillion dollars and yet you see narcos dying broke and many of the sicarios are getting killed for less than $600 dollars a month.

  9. This can't be true! Corruption does not exist in the US. This is made up. They just like to blame it to America (the country not the CONTINENT)......... I like sarcasm.

    1. Yeah,you stupid red neck..its stupid farts like you that the American goverment uses as dispensible load of shit..wake up you stupid red neck moron.

  10. Blatant proof right here that the US gov is in some sort of relationship with the Billion dollar drug cartels. Anyone who thinks otherwise is a naive gullible fool.

  11. Of course, the US is different. haha bitter bitter bitter

  12. Pre paid credit cards to costco,sears ect...It's all about the MONEY....

  13. yes, you can use cash (for now) in the USA as the country is still, somewhat, free. However, anything $10K USD and over is reported to the IRS and even smaller cash transactions or "strange" activity is reported to the government via the "know your customer" regulations and other regulations, laws, and executive orders. I also doubt that drug dealers buying illegal weapons and the criminals selling them report anything or care about the regulations- so whether it is cash, cheque, or in kind (drugs) is not the problem, it is the sale and who is buying/selling them.

  14. and is there any wonder why the US does not legalize drugs? Too much profit and all of it gets spread around.

  15. With the us banks paying they way out of court using drug money might as well say all us banks has drug money in them and are will to pay off the court IRS an justice department off in drug money bribes if only i was connected fuck the honest poor life

  16. Hi-CHIVIS-Hi-
    FYI or Not...

    Thurs 12 July 2012 11:55

    Specialists ensure that transfers of funds to the campaign of Enrique Peña Nieto through Monex Bank, fits with the typical mechanism of money laundering.

    Electoral inconsistencies
    Mexico City-On Monex Bank was designated by the coordinator of the campaign Josefina Vazquez Mota, Roberto Gil Zuarth and members of the coalition "Progressive Movement" have been a vehicle to transfer to the campaign of Enrique Peña Nieto resources that exceed the cap campaign established by the IFE.

    The facts

    Between 20 April and 19 June, the PRI received resources and Trading Business Group Inizzio Epfra through Banco Monex, according to separate reports by the PAN and the Progressive Movement.

    In turn, Banco Monex issued at least 9 000 prepaid cards bound into the pockets of operators PRI. The approximate amount, 160 million dollars, would exceed the maximum contribution of a particular campaign.

    Shell companies

    The theme Monex and linkage to the money laundering operation increases to discover that the tax domiciles and Trading Business Group Inizzio Epfra does not correspond to those companies.

    Money Laundering

    According to federal deputy and member of the Finance Committee of the Legislative Palace, Mario di Costanzo, Monex operation fits with the typical mechanisms of money laundering.

    "It suddenly went into a money Monex, opened an account and then made a deal with two companies that were billed a certain amount, but it turns out that these two companies have a federal registration of false cause, who presented an address to not exist and that their operation is not justified to acquire, for example, food stamps for those amounts, "said Roberto Gonzalez Amador of the newspaper La Jornada.

    "That is money laundering: we do not know the origin and destiny of those resources; not know where the money went to Monex and what was used, although we know that the campaign was linked to the PRI. But, he noted, even if that money was not connected with the campaign of Peña Nieto is an extraordinary transaction that falls within the assumptions that the authority should investigate when it is considered money laundering. "

  17. I allways wondered why we dont declare a War against money laundering.
    Id love to see the feds bust a door down of a bank and go in gung ho to take out the number one Cartel Launderer, why not?

  18. usa, home of brave gobierno del diablo

  19. Yes The US requires reporting deposits of 10K in the US. But it is a different ballgame coming from a foreign country into the US. I have a business in Asia. BTW the US government admits they have few resources to police abuses.

    Mexico is so restrictive. and worse now. I had a difficult time getting a bank account, I had to prove I lived in Mx etc. Now when I send W/T from my foundation account or personal accounts to my Mx accounts I am limited per month.

    Dollars are not wanted, a low point when KFC refused my dollars for a bucket a chicken.

    Mexico is too strict aand harms honest people. But US is too lax..

    @5:16...I Just read this article on BB forum...posted by Havana and was thinking of posting...thank you!

    To the person who doubts the trillion figure based on the appearance of the dead foot soilders. Read the structure of cartels especially Zs..the tiered structure, what you see are the foot soldiers recruited to kill and die. The are the bottom. An think of them not as drug cartels but organized crime groups, 50% of their business in diversification into things like intellectual market knock offs.

    Bill gates said if the cartels are not stopped by 2015 just the business of software knockoffs will be a business of more than a trillion USD. (and no one buys the real deal in Mx and many countries)...paz, chivis

  20. American gov has always been corrupted for all the dumb ass erogant americans or should I call tou gentiles edger j hooverhead of the old fbi if they were not following rules then why now america is doomed not mexico fifty years ago mexico was like a 3 world country now between narco tourism and farming soon mexico will be respected no more wetbacks now just sicarios fuck the police and sniches keep gettin yall money hahaha bet mexicos economy is doin fine obama need too ask el chapo too pay half our debt

  21. The banking elite in this country enjoys imunity against breaking the law.
    If you dont get caught you do good business for your bank and your bank pays you a great bonus.
    If you get caught red handed the bank pays a fine and you got to lok for a job in another bank.

    Its the same on Wall St. These banking elite are parasities feeding on good and honest people.

  22. The U.S. Gov. allows a Ka-jillion dollars in drug laundering so that they can trace back to the top cartel leaders. So I have to ask; Where's the beef? Which top guy has been gotten? Meanwhile each of those dollars represents another American crack head or another murdered Mexican. It seems like the fed is working both sides of the law. The citizenry is paying the cost tenfold while the U.S. gov. Takes a small profit. The cartels still get the lions share and remain free. The celebrated 'Chapo' toasts the Forbes list with champaign and the blood of our children. Our future is bleak.

  23. oh the good ole USA - worlds largest importer of illegal goods and the worlds largest exporter of war! Nice neighbor, eh?

  24. "Hey moron investigate more before u post your ignorant response. That only applies to financial institutions. You can go out and buy a Rolls-Royce Phantom from a private party for $300,000 and there is no IRS reporting required."
    You need to do your own research before calling other people morons. Any business in the US has to report any cash transaction over 10,000. If you go to car dealership and spend 300,000 cash on a rolls royce its being reported to the IRS. Yes, you can go buy it from an individual for 300,000 cash. And then it will be reported when they go and deposit it in their bank account. Is the IRS reporting form

    1. Obviously u don't handle much cash. If u go spend $20,000 at Macy's there is no IRS reporting either yes you pay sales tax but that is it. For the example of buying from a private party, yes if they go deposit the money there will be an IRS report for them but not for the buyer. That is what the writer of the article means. That people can still go spend more than $10,000 in cash and not have much paper trail. I paid $12,000 cash for custom work on my lifted truck and all I got was my receipt from the shop saying I paid for it. I'm sure the owner of the shop had to do an IRS report to deposit the money. When it came to me though no questions were asked about the source of money. He completed the job I paid sales tax n that is it. Lets pose something hypothetical what if the shop owner decided to break that deposit into 2 that would make 2 $6000 deposits so if that was the case there would be n IRS report at all. So it is possible to spend more tHan 10 grand without having to report it to the IRS MORON!!!

  25. @9:18 AM You like Guatemala better? Maybe El Salvador?

  26. @ July 14, 2012 9:18 AM

    "oh the good ole USA ..- "

    I don't see Canada complaining. I don't see Mexico complaining when they're directing their citizens northbound. I don't see Coors Light and Budweiser killing each other over plazas. I don't see the typical municipal police force in the US being narcos by proxy and seeing their role in defending public safety very little, if at all. I don't see someone from LA being tracked and killed as soon as he arrives at the NYC airport. (Try flying from Culiacan to Nuevo Laredo sometime)

    The "good ole US." Yeah, your irony is ironic. Que no tienen espejos ahi en Mexico lindo [sic]y querido ?

  27. Actually most Canadians can't stand having the arrogant greedy war machine next door. I would know, I live in Canada.

  28. Don't plan for the perfect crime by relying on the holes in the 10 grand reporting proceedures. There is always the possibility that through accident or design, the gov't. will find your purchase. They may be investigating the private party or the car dealer or the previous owner or whatever. There are a few agents who are adept and creative in their vigilance. Structuring expenditures to be under 10 grand is a big flag Your neighbors may report your new Bentley triggering a closer look at you by big brother. Arguing the rules of reporting cash transactions is silly because the IRS may not be following the published rules to look for you. Try this: get an honest job and work for a living.

  29. Oh my,and here is me thinking banks were all honest.
    July 12, 2012 10:22 AM .
    Even US banks,make you feel better?

  30. Well, thank goodness *someone* is investing in the EEUU! Otherwise there might be economic difficulties or something!

  31. " I don't see Coors Light and Budweiser killing each other over plazas. I don't see the typical municipal police force in the US being narcos by proxy and seeing their role in defending public safety very little, if at all. I don't see someone from LA being tracked and killed as soon as he arrives ..."

    Are you from another planet? Or are your really that dumb? I don't see Tecate Beer or Victoria killing each other for plazas either in Mexico. But I do see people killing each other in the good ole USA over drug turf just like in Mexico. I also see, as reported in countles news sources of people being tracked and killed, here in the good ole USA, as soon as they arrived in the airport. Heck, Iranian agents tracked and killed a military man in California back in the 80s.

    Wake up, educate yourself about the country you live in.

  32. Sure, sure you thought that.
    July 15, 2012 10:11 AM

    Reality a little tough for you to accept? By the way, the tooth fairy doesn't exist. Sorry.

  33. The drug cartels would qualify as a G20 member, except THE CARTELS INVEST MONEY THAT COME FROM THE US TO BEGIN WITH!

  34. Anti Money Laundering invite the terrorism in our country or a nation.It is open source for terrorist.We should take a step to stop this.

  35. Nice blog and thanks for sharing such a wonderful information with us.Nice video. Thanks for the video.
    Anti Money Laundering

  36. So what this article tells me is that the money made by Mexico's cartels in drug trafficking proceeds in the U.S., stays in the U.S. We'll l'll be damned!


Comments are moderated, refer to policy for more information.
Envía fotos, vídeos, notas, enlaces o información
Todo 100% Anónimo;