Terrorism, Drugs, Money Laundering, and the Central Bank
A look at the State Department's continued role in shifting
world power to the Central Bank.
By Executive Editor
Prepared in accordance with section 489 of the Foreign
Assistance Act of 1961, as amended (the “FAA,” 22 U.S.C. § 2291), the State Department this month released
Volume II of its annual International
Narcotics Control Strategy Report (INCSR). This volume of the
report focuses on international money laundering and financial crimes, and endeavors to link tax havens to terrorist
and drug trafficking activities. While discussing the expansive progress made by the Money Coalition (IMF, World
Bank, Central Banks) to control the world's money supply, the report ironically discloses those countries over
which it does not have total control- those where citizens are able to earn, spend and invest money without paying
a hefty tribute for the "privilege" of using money issued by the Coalition.
Citing the threat of terrorism as justification for making worldwide
the jurisdiction of US enforcement agents, the report summarizes the ways in which the U.S. Treasury Department's
Financial Crimes Enforcement Network (FinCEN), the FBI, IRS, FDIC, DOJ, DEA, the Department of Homeland Security,
and others are working with the Federal Reserve Board, IMF, and world Central Banks to create a network that combats
money laundering by controling all financial transactions. The State Department purports that this expansion of power is needed
to prevent terrorist-supporting activities such as off-shore business operations, importing and exporting, and
the exchange of hard assets (gold and fine gems).
Toward building support for the global control of currency, the INCSR
lists "Major Money Laundering Countries" and cites selected "sting" operations such as:
- Smuggling Freon: A Businessman was arrested for importing freon and
allegedly laundering profits through Panamanian accounts and Shell Corporations;
- Internet Gambling: IRS-CID seized millions in offshore assets in Antigua
and Belize tied to gaming operations;
- Offshore Banking in Antigua: A Provo, UT man was convicted of tax crimes
when he didn't file his tax return, used a VISA card account from an offshore bank to pay personal expenses, transferred
money to the VISA card account, and transferred records reflecting income and expenses offshore.
The report also states:
"Following the money as a way of combating crime and terrorism
continues to require nimble action by authorities to keep pace with the alternative methods of operations criminals
and terrorists seek to employ to acquire and move their funds. The closer we looked at banks, the faster the money
seemed to shift to non-traditional money movers—gem and jewelry dealers, real estate, charities, and attorneys
or other intermediaries. As these entities were brought under the purview of anti-money laundering laws and regulations,
the money moved further underground—to alternative remittance systems such as hawala, trade or commodity based
systems, or to cash couriers. In 2004, we came to more fully understand the workings of those methods and to realize
that we must concentrate increasingly on the workings of these hard-to-detect systems."
Despite its increased understanding, and all of the success toward controling
the transactions in every nation, the State Department admits that the
same controls have not been placed on Islamic Banks. The INCSR
"Some terrorist groups may also use Islamic banks to move funds.
Islamic banks operate within Islamic law, which prohibits the payment of interest and certain other activities.
They have proliferated throughout Africa, Asia, the Middle East, and most recently Europe, since the mid-1970s.
Many of these banks are not subject to the anti-money laundering regulations and controls normally imposed on secular
If stopping terrorism is the objective of money controls, why hasn't
the Money Coalition used its influence to force Islamic Banks to disclose private information? Profit. Whereas
Muslim banks don't pay interest, the money deposited is loaned-out without cost to the bank. This is a great trade-off
for the Central Banks that supply currency to Muslim Banks, since the product, money, can be recirculated at a
substantially higher profit margin. This margin, estimated in the billions of points per day, is growing at a rate
that will soon exceed the tax return revenue that would otherwise be obtained if strict controls were issued.
Finally, the State Department admits that several trends are growing
rapidly as people and terrorists seek to keep control of their assets. Those trends are:
- The use of non-bank financial institutions
- The use of alternative remittance systems
- The use of currency, gold, gems and precious stones instead of bank
checks and credit cards
- Trade-based transactions.
The INCSR also provides a status table listing progresses in countries
that are being pressured to surrender their financial soveriegnties. A careful reading of the list reveals countries
that are still independent from the money restrictions. It can be presumed that these nations, for now, are relatively
immune from U.S.-led confiscation activities, though other concerns, such as those involving personal safety, may
exist. By analysis, the countries topping the non-conformist list are:
As people and countries resist the Money Coalition, the State Department
is installing, in foreign countries that will allow it, Trade Transparency Units. The TTU's are organizations that
will collect and analyze suspect trade data and then disseminate the findings to compliance enforcement bodies.
For now, the countries listed above have not knowlingly allowed such moles to enter their borders.