The coming of the DEA

Jul 24, 2014 Editorial

The long awaited official United States Drug Enforcement Administration presence within these borders is a welcome departure from the intransigent posture and insipid rhetoric from officialdom to which we have become accustomed.
It is a truism that crime knows no geographic boundaries and the ease with which transnational criminal enterprises flourish in the realms of drug trafficking and money laundering bears that fact out. The increasingly international scope of this type of criminal activity has proven complex in the face of law enforcement efforts to interdict the illicit proceeds of these crimes.
However, the uninformed among us would want to know what capacities and capabilities have been developed in consideration of the aspects of money laundering, and whether these are aggressively being investigated in a scenario where confidential information-sharing is problematic.
The DEA, it is expected, will be aware of the myriad techniques employed by the drug trafficker to hide their ill-gotten gains based upon lessons learned in their various surveillance and interdiction initiatives. Our local sleuths can add to their existing body of knowledge in this regard.
Illicit drug transactions are basically cash transactions that the drug traffickers conceal and convert to appear as if the cash was generated by a legitimate business transaction. Simply put, it is the process of legitimizing wealth by disguising its source or ownership.
Opposition Members of Parliament have expressed concerns about the rationale and necessity for certain investments which seem not well thought out including the Marriott Hotel.
The money laundering process occurs in three phases which are briefly described as: (1) Placement – where the money from an illicit source is inserted into an apparently legitimate location; (2) Layering – which is the means by which a series of movements are used to mask the origins of the money; (3) Integration – covers the movement of the laundered funds back into commercial activity.
A couple of examples of the methods employed will suffice at this time to give an idea of some of the challenges inherent in the detection and prosecution of these criminal activities.
The choice of a particular technique depends on the ultimate objective and the unique circumstances prevailing. The most widely practiced method is to conduct cash transactions with the bank, sometimes exchanging cash for treasury bills, bank drafts, letters of credit, travelers’ cheques etc.
Money exchanges and brokerage houses are sometimes used to avoid the conventional banking system; using cambios to facilitate the transfer of monies to other jurisdictions. Many traffickers utilise direct investments using successful foreign businesses or dummy foreign corporations as fronts for transactions.
Instances abound where legitimate businesses will agree to accept a new criminal partner who makes the new investment with illicit funds funneled through one of his foreign corporations.
Drug traffickers have also been known to disguise illicit money as profits allegedly derived from a successful foreign business or real estate transaction. They then pay the requisite taxes as if the venture had been legitimate and use the remainder in any manner they choose.
Double invoicing is another popular technique where a company orders merchandise from its foreign subsidiary at an inflated price and deposits the difference between that and the real price in a special off-shore account.
Sometimes the company reverses the process by selling merchandise at an artificially low price and deposits the difference in a secret foreign bank account maintained by the company.
Another practice employed is the selling of a business which ostensibly shows substantial cash flows and which should – all things being equal, realize a better selling price. The conventional view is that there is an abundance of anecdotal and other evidence to assist the work of the DEA. We have seen it all.
The number of unique money laundering techniques has proven difficult and time consuming for local agencies like the Financial Investigative Unit to effectively get a handle on the illegal methods and proceeds of the drug trafficker. Guyanese are unarguably ranked among the smartest people on planet earth and it is therefore safe to assume that even the DEA will be challenged to come to grips with the more ingenious techniques employed by drug traffickers who it is believed occupy the top rungs of society.

Latest News

The coming of the DEA

Related

Similar Articles

The Glenn Lall Show | December, 2nd, 2024

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

UDFA Year-End Futsal Tournament kicks off December 15

Jaker, Taijul and Rana script Bangladesh’s...

Trophy Stall and Superbet on board with Kashif...

Jai Hind Jaguars trounce North Soesdyke Masters...

BMC invites clubs/teams to register for the 2025...

ASK-G holds successful Karate Grading

Features/Columnists

Deeply concerned about political dysfunction in society

Haiti: Tragically Descending into Deeper Crisis

Wanted Pathfinders

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]

The coming of the DEA

Share this:

Related

Similar Articles

The Glenn Lall Show | December, 2nd, 2024

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Features/Columnists

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]