Topics of Interest
Money Laundering
U.S. Customs Service Financial Investigations
The U.S. Customs Service has a long history of combating global financial crime. Customs jurisdiction is triggered by the movement of illicit funds, services, or merchandise across U.S. borders and is applied pursuant to the authority under the Bank Secrecy Act, the Money Laundering Control Act, and other laws. Customs efforts are designed to dismantle specific money laundering systems as well as international criminal organizations. To achieve this objective, Customs uses undercover investigations, outbound currency operations, regulatory interventions, industry outreach, multi-agency operations, and global partnerships. Customs financial probes focus on the proceeds of all crimes, including drug trafficking, terrorism, fraud, and pornography. Listed below are a few significant Customs financial cases:
Operation Casablanca - This undercover Customs case is recognized as the largest drug money laundering investigation in U.S. history, resulting in 167 arrests and the seizure of more than $100 million. Three prominent Mexican banks were indicted on criminal money laundering charges, two of which pleaded guilty. The third forfeited $12 million. Of the 44 individuals arrested in the May 1998 final takedown, 41 pleaded guilty or were convicted.
Operation Wire Drill - Conducted by the Customs-led El Dorado Task Force from 1995 to 1998, this case targeted suspect remitters in the Northeast that were moving nearly $800 million to Latin America annually. The probe brought Geographic Targeting Orders against the remitters and their 1,200 agents, resulting in a dramatic reduction in the flow of drug proceeds through New York remitters. There were 137 arrests and $50 million seized.
Operation Risky Business - This case ranks as the largest non-drug money laundering investigation conducted by Customs. It targeted a massive "advanced fee" scam that victimized at least 400 people around the globe of at least $60 million through the use of offshore banks and shell corporations. As of May 2001, the case had resulted in 19 convictions and guilty pleas, as well as the closure of specific banks in Antigua.
Operation Choza Rica - This Customs probe disclosed a massive money laundering operation involving Mexico's most powerful drug boss and officials at American Express Bank International (AEBI). The case resulted in convictions of two senior AEBI executives and several other U.S. bankers. In 1994, AEBI forfeited some $40 million to the government.
Operation C-Chase/BCCI - This Customs probe, which
concluded in 1988, was the first to expose criminal activities at the
Bank of Credit and ommerce International (BCCI). The case resulted in
the indictment of more than 60 individuals, including five BCCI bankers
who were later convicted. BCCI ultimately closed in a global,
multi-billion dollar collapse.
Washington, D.C.
October 15, 2001