Western Banks ‘Reaping Billions From Colombian Cocaine Trade’

Reports Ed Vulliamy in the Guardian:

The vast profits made from drug production and trafficking are overwhelmingly reaped in rich “consuming” countries – principally across Europe and in the US – rather than war-torn “producing” nations such as Colombia and Mexico, new research has revealed. And its authors claim that financial regulators in the west are reluctant to go after western banks in pursuit of the massive amount of drug money being laundered through their systems.

The most far-reaching and detailed analysis to date of the drug economy in any country – in this case, Colombia – shows that 2.6% of the total street value of cocaine produced remains within the country, while a staggering 97.4% of profits are reaped by criminal syndicates, and laundered by banks, in first-world consuming countries.

“The story of who makes the money from Colombian cocaine is a metaphor for the disproportionate burden placed in every way on ‘producing’ nations like Colombia as a result of the prohibition of drugs,” said one of the authors of the study, Alejandro Gaviria. “Colombian society has suffered to almost no economic advantage from the drugs trade, while huge profits are made by criminal distribution networks in consuming countries, and recycled by banks which operate with nothing like the restrictions that Colombia’s own banking system is subject to.”…

Read More: Guardian

8 Comments on "Western Banks ‘Reaping Billions From Colombian Cocaine Trade’"

  1. Haystack | Jun 3, 2012 at 3:52 pm |

    This is why I only buy fair trade cocaine. 

  2. Cheftommyboy | Jun 3, 2012 at 4:45 pm |

    Now we see the true reason why the “War on Drugs” continues….Noone will stand up to the banks and their money….be it dirty or ripped off money from populace with their over-exuberant rates… and supported by bought off polititians.

  3. emperorreagan | Jun 3, 2012 at 8:29 pm |

    If you’re at a good college or from a good family and like a little coke now and then – maybe you can become president (like Bush Jr. and Obama).

    If you’re Jaime Dimon then you can get millions of dollars in bonuses at absolutely zero risk, some of which undoubtedly can be traced directly to laundering cocaine, and no one will ask a question.

    If you’re anyone else near cocaine you’re potentially totally fucked.

    • Hanksmith | Jun 4, 2012 at 12:21 am |

       Don’t forget rock stars too.  And I agree with your statement…. if you are from the so called ‘upper echelon’ of society being coked out of your gourd every now and then has it’s intangible benefits. 

  4. banking, drugs, weapons and politics
    have been major US businesses for over 100 years
    and this particulate story has been around for at least that long
    except the name of the drug changes

    google: bush harriman drugs, for an interesting read about how it all works

    • Independentcontractor | Jun 4, 2012 at 12:32 am |

       I agree with what you have stated.  It’s just incredibly more streamlined now days.  Plus if you have contracted security details ala Blackwater, who do not adhere to any rules you can deal with any potential pillagers more decisively.  And let’s not forget the legalized versions of all the illegal drugs which are supposedly a molecule away from being the real deal…and we all know how big a molecule is. 

    • Jin The Ninja | Jun 4, 2012 at 11:51 am |

      don’t forget all the old families in US and UK who made the bulks of their fortunes off illegal opium trafficking in china.  includes several senators, major financiers, heirs/heiresses to several multi nationals.

  5. Its not illegal unless you get caught for these monsters.

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