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'Drug money flowed into banks'

Jan 25 2009 17:17

Vienna - The United Nations' crime and drug watchdog has indications that money made in illicit drug trade has been used to keep banks afloat in the global financial crisis, its head was quoted as saying on Sunday.

Vienna-based UNODC Executive Director Antonio Maria Costa said in an interview released by Austrian weekly Profil that drug money often became the only available capital when the crisis spiralled out of control last year.

"In many instances, drug money is currently the only liquid investment capital," Costa was quoted as saying by Profil. "In the second half of 2008, liquidity was the banking system's main problem and hence liquid capital became an important factor."

The United Nations Office on Drugs and Crime had found evidence that "interbank loans were funded by money that originated from drug trade and other illegal activities," Costa was quoted as saying. There were "signs that some banks were rescued in that way."

Profil said Costa declined to identify countries or banks which may have received drug money and gave no indication how much cash might be involved. He only said Austria was not on top of his list, Profil said.

- Reuters

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Chris
Feb 13 2009 16:07 Report this comment

I wonder why heroin production has gone up in Afghanistan since US and UK moved in. The UK made it's money selling opium to the Chinese. Wake up people government and the UN are the drug dealers. Why else outlaw hemp!!

Guru
Jan 26 2009 10:40 Report this comment

United Nations seems to be as toothless and ineffective as SA Police - what happened to the world - here we have a United Nations crime and drug watch dog that declines to name banks and countries that are involved - step aside and let a true leader take over

Frank
Jan 26 2009 09:48 Report this comment

I seriuosly believe that it is time for a complete overhaul of the global banking systems. They have become corrupt and greedy and have forgotten their role as custodians of our money...not casinos and huge profit spinners .. The world needs to go back to more simpler and controlled banking practices using cash... Higher risk financing should be hived off under different entities where people know and understand the risks

MacZero
Jan 26 2009 07:05 Report this comment

Does this also include the American Government, Or do they have dispensation, The CIA is known to have set up a number of drug operations in the past to provide illicit funding for its opperations that the Yank government did not want to come to the publics notice. Will bet that they are still doing it, with the full knowledge of the government. That is the operations that they want the government to know about.

Geyser
Jan 25 2009 18:07 Report this comment

These countries banks certainly have drug money: USA,Britain,Bahamas,Israel, South Africa, Hong Kong, Singapore,Nigeria,Lichtenstein,Holland,Sweden,Russia. Investigate them


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