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NCJ Number: 158488 Find in a Library
Title: Black/Parallel Markets: When Is a Money Exchanger a Money Launderer?
Journal: Dickinson Journal of International Law  Volume:13  Issue:3  Dated:(Spring 1995)  Pages:423-439
Author(s): W Parker III
Date Published: 1995
Page Count: 17
Type: Legislation/Policy Analysis
Format: Article
Language: English
Country: United States of America
Annotation: This article surveys the recent forfeiture actions instituted by the U.S. Department of Justice as part of its continuing attempt to seize laundered drug money.
Abstract: Such actions include Operation Polar Cap, Phase IV; the Hawaii All Monies Case; and the New York All Funds Case. In 1989, the Federal Government, in Operation Polar Cap, initiated a series of criminal prosecutions against the then-largest association of individuals and corporations involved in laundering drug dollars. In United States v. All Monies, the Federal Government initiated forfeiture proceedings in Hawaii. The case involved bank accounts implicated in drug money laundering wherein the claimants' alleged innocent ownership of the tainted money was based directly on currency exchanges in the parallel markets of Peru. In United States v. All Funds On Deposit In Any Accounts Maintained At Merrill Lynch, Pierce, Fenner and Smith, the court, in denying post-verdict motions for judgment notwithstanding the verdict, found that the interrelationship of the "parallel" market did aid and abet the drug money laundering activities of the Cali Cartel. These cases represent Federal efforts to attack parallel markets that are used to facilitate the laundering of drug-tainted dollars. Parallel markets involve a money exchanger and a drug money broker. Although money exchangers and drug money brokers may not have been involved with the distribution of drugs, they are aiders and abettors in the laundering of millions of drug dollars. Under the U.S. Drug Abuse Prevention Act, anyone who "knowingly" aids and abets the laundering of drug proceeds is liable under the criminal laws of the United States, just as if the party had conspired to distribute the controlled substance. One section of this article chronicles the successful international efforts that have brought drug money laundering organizations to justice. The concluding section advises that those who participate in parallel markets face an increased risk of prosecution by the Federal Government. 82 footnotes
Main Term(s): Criminology
Index Term(s): Drug law enforcement; Forfeiture law; Money laundering; White collar crime
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