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Splicing of the drug business and the banks

Banks and drug trafficking — not just partners, as a unified whole

Сращивание наркобизнеса и банков

Here recently in the Guardian (UK) published an article “Global Banks Are the Financial Services Wing of the Drug Cartels”[33]. In Russian language it can be translated approximately as: “International banks are the financial services division of drug cartels”. The article is very interesting, informative. But already in the title, from my point of view, contains all the same “bias”: the Alliance of drug traffickers and the bankers the latter is said to play a subordinate, passive role.

From such views about the relationship of drug trafficking and banks is usually done the next conclusion: Yes, banks are to blame for the “laundering” of “dirty” money, they are accomplices, but not the main participants of “dirty” business. And, finally, the final conclusion in the chain of reasoning: the state to combat the spread of the plague epidemic of drug addiction the main force should be directed towards the fight against drug trafficking, and dealing with the banks-supporters can be performed on the leftover principle.

In real life the way it is. In the center of attention of all States and international organizations is the mafia. Under it is traditionally considered to understand the organized crime groups that are engaged in the production, processing, storage, transport, wholesale and retail sale of drugs. Such groups are often referred to as drug cartels. To fight the drug mafia States today spend fabulous money.

In 1972, when Richard Nixon declared war on drugs, the costs from the Federal budget of the USA for these purposes were equal to $ 110 million. But for the 2013 fiscal year on programs to combat drug administration of President Barack Obama has requested nearly 26 billion US dollars, 1.6 % exceeded the appropriations of the previous fiscal year. And that’s not counting the billions of dollars allocated for the implementation of these programs at the level of the authorities of the individual States.

Detailed deciphering of the budget allocations shows that banks in these programs are “behind the scenes”. It is implied that the struggle against “laundering” of “dirty” money from drug trafficking should be addressed by the banking supervisors. I.e. primarily the Federal reserve, which is not only not part of the Executive authorities of the USA, but generally a private Corporation.

As a result of such “distortions”, we have the following picture. According to the data given by the Director of the Federal service of the Russian Federation on control over drug trafficking (FSKN) Victor Ivanov General, public service on fight against the illegal address of drugs, on average, around the world seize about 10-15 percent of supply in the drug market. At the same time, the total volume traded in the world of money derived from drug trafficking (“drug money”), is withdrawn not more than 0.5% [34].

For effective struggle against the plague of drug addiction in the world to overcome the stereotypes in the understanding of what the drug mafia. In its composition it is necessary to include banks. And not some abstract banks, which are registered in the distant offshore, and the largest world banks. All, without exception. The presumption that the world’s banks — “white and fluffy”, expensive for humanity. It should be clearly understood that the world’s banks are full members of the drug mafia, which occupies in the hierarchy of the upper level.

In fact, to date, has completed splicing of large Bank capital with the drug mafia in the traditional sense (“drug cartels”, “narcissistically”). To distinguish between global banks and drug cartels today. Also it is impossible to distinguish between “dirty” and “clean” money. A significant part of the so-called “white money” also has a narcotic origin. The established Alliance global banks and cartels can be labelled“narkomovskaya mafia”, or“narkomovsky business”.

The new Alliance becomes truly unlimited opportunities to influence all aspects of life in modern society: the economy (industry, agriculture and other sectors of the real economy and services), science, education and culture, internal and foreign policy. The current model of the social structure of most countries in the world is called “capitalism”. With that said we should make a clarification: this “narkomovsky capitalism”(NSC).

Proper understanding of the nature of modern capitalism is needed to build an effective strategy and tactics to combat the global threat of destruction of mankind from drugs. In particular, dramatically increase efforts to combat banks as institutions of organized crime. Order to establish over them effective state control. Until the full nationalization of banks. Narkologicheskogo the elimination of capitalism would allow humanity to get rid of many socio-economic problems: economic and financial crises, unemployment, socio-polarization property of the society, etc.

The modern hierarchy of the drug mafia

The drug mafia in a broad sense has three levels.

The first (lowest) level — groups that are at the beginning and at the end of the chain the movement of drugs:


a) groups that are engaged in the organization of production (growing and primary processing) of drugs and their procurement from manufacturers;

b) groups that are engaged in bringing drugs to final consumers (retail market).


Second (middle) level — groups that deal with large quantities of drugs. They do the final processing, packaging, storage, transportation (including transboundary) of drugs, organization of wholesale trade. The group at this level is usually called cartels and narcissistically, and their leaders — lords.

What is a cartel? Specialist in organized crime M. Glenny writes: “the Cartel is a holding company, the agglomeration of small and flexible mafia groups who own various fractions of the industry… in contrast to popular notions cartel… highly decentralized”[35].

In the last century the major drug cartels based in Colombia. The most famous of them — the Cali cartel and Madeline (city of Colombia). To understand the scope of the activities of cartels, we present information on the Cali cartel, prepared at the time of the American Control drug and related to 1990-th years: “the Annual profit of the Cali mafia is estimated to be between 4-8 billion dollars; this organization is managed like a well-oiled business, in which the leaders of the Cali mafia decide… for Colombia and the United States.

They run their international business through a complex system of phones, faxes, pagers and computers, having its own intelligence network that can compete with the intelligence agencies of most developing countries. The Cali drug lords control the airport in Cali, its network of taxis and telephone company. They know who came in Cali and who goes out, who spoke to the police and who cooperated with U.S. law enforcement agencies”[36].

You should pay attention to the fact that the name of trafficking groups (such as the one that is based in Cali) “drug cartels” is not quite correct. The term “cartel” is more suited to those agreements, which conclude several of these groups. Agreements are mostly related to market division sales of goods. The same Colombian group agreed about the responsibility of the market of marijuana and cocaine in the United States. Grouping Cali, in particular, according to these agreements, received the new York market[37].

Group drug type of cartel of Medellin or Cali should be called narcissistically. In economic and legal literature has been the definition of a syndicate as an Association of formally independent companies with a common sales activities. In Colombia, Mexico, Afghanistan, countries of the “Golden triangle”, South Africa, other countries there are groups that organize the cultivation and processing of drugs. Created “product” they convey a common office, which carries out wholesale deliveries of goods. This is a classic form of the syndicate.

But several syndicates enter into a cartel agreement on the division of the market. Every major country (USA, UK, Germany, France, etc.) is a large market of drugs, which are operating several syndicates, Contracting the section of the market. The “head” of the syndicate is the country of implementation, and the “tail” — in the country of production of goods. Take, for example, drug syndicates Afghanistan. Their main leaders are thousands of miles from Afghanistan’s opium fields in Turkey, Europe and even America. Almost all drug syndicates are transnational organizations.

Today, the malls and the traffic in the drug trade has changed a lot compared with the last century. The first role in twenty-first century came out of the group of the drug mafia in Mexico (cocaine) and Afghanistan (opium and heroin). Although the group and enter into cartel agreements on the division of markets, but these agreements are routinely violated. Begins the struggle for the redivision of markets, which turns into a very real war[38].


The third (highest) level — groups that are not directly in contact with the “product”.


The main institutions, which are part of the third (highest) level include banks, intelligence agencies, mass media. They all have legal status. On banks and the special services we will have a special conversation below. But besides them, the third level comprises the representatives of the legislative, the judiciary, some of the key departments of the Executive branch. These institutions and individuals are tightly woven network.

It is beyond the boundaries of individual States, forming a global network. The creation of the global network is promoted which began three-four decades ago, the liberalization of the international movement of goods, people, capital, information. What is called globalization. In fact the mafia can be thought of as the world narcocracy, with offices and branches in different countries of the world.


At this level are solved such strategic objectives as:


a) “laundering” of cash received from the sale of “goods”;

b) placement of the income received from the sale of “goods” in various sectors of the economy;

C) providing “cover” the current operations of the drug mafia on the first and especially second levels;

d) the creation of favorable conditions for the expansion of drug trafficking in different countries.


World drug mafia: strategic objectives and its real owners

On the first and second tasks we more will speak below.


As for the third problem (“cover” of the drug mafia operations), then its solutions are applied such methods as:

• bribery of public officials, who must contend with the mafia (police, service for combating illegal circulation of drugs, border and customs services, etc.);

• introduction to the relevant public service their agents;

• delivery to the drug cartels (groups of second level) weapons, etc.

The third task can also be carried out actions to prevent the wholesale drug market of new competitors. According to experts, public service primarily intercept the party of “goods” that new groups wishing to establish themselves in the market. The wholesale market is oligopolistic, entry to new participants is prohibited or extremely difficult.


The fourth task involves a very wide range of actions:

• lobbying laws that facilitate treatment of drug users (up to the full legalization of drug use);

• promotion of drugs through mass media;

• lift restrictions on the movement of goods, money and people between States (under the guise of liberalization of international trade and capital flows);

• encouraging the establishment of offshore centres (in order to facilitate the laundering of drug money);

• organization of political, economic and military pressure on States that are trying to organize an effective fight against drug trafficking (such pressure is often performed under the guise of “fighting terrorism”), etc.

A shining example of operations in the solution of the fourth problem is the invasion of NATO troops to Afghanistan in 2001 allegedly to “combat international terrorism”. And in fact, in order to organize large-scale production of drugs (opium, heroin). On the eve of the Taliban, as we know, has managed to significantly reduce opium poppy fields in the country.

For several years an armed contingent of NATO in Afghanistan drug production has increased literally dozens of times, and Afghanistan became the world’s largest producer of heroin. Some analysts even believe that “terrorist acts” of September 11, 2001 were planned the behind the scenes world primarily in order to give the “green light” a dramatic expansion of drug trafficking throughout the world under the guise of the armed forces of the West.

One of the States that today carry out effective fight against drug trafficking, is Iran. It not only prevents the spread of drugs within the country, but also actively fights against drug trafficking, which passes through its territory from Afghanistan and other Asian countries to Europe. According to some analysts, this is the key reason that the U.S. is exaggerating the atmosphere of tension around Iran (up to armed aggression).


The management of the world drug mafia

The third level of the drug mafia world is not flat network organization, it is run by a very narrow group of people. They can be called the world oligarchy.One of the most respected researchers of the world drug mafia John Coleman calls them “three hundred Committee“, composed of crowned heads, bankers, statesmen and politicians — “favorites of favorites”.

He writes: “From Colombia to Miami, from the “Golden triangle” to “Golden Crescent”, from Hong Kong to new York, from Bogota to Frankfurt, the drug trade, and especially the heroin trade, is big business, and it is completely, from top to bottom, is controlled by several of the most “untouchable” families in the world, and each family has at least one member in the Committee of 300.

Drug trafficking is not a small trade on the corner. This business provided a lot of money and experts to its course was smooth and seamless. This fully ensures the efficient mechanism, under the control of the Committee of 300″[39]. Condition for the smooth functioning of the “mechanism” is that in almost all countries of the world drug mafia has patrons in the highest echelons of power: “This is a huge Empire that sells only heroin and cocaine.

In every country it always run with the highest levels of government”[40]. Although the members of the Committee of 300 owned or controlled by the largest banks, insurance companies, oil and other corporations, trading houses and other businesses, but the world Naracoorte is their main asset: “in fact, today it is the largest independent company in the world, surpassing all others”[41]. This Naracoorte began to take shape in the XVIII century and still exists today.

According to J. Coleman, members of the Committee of 300 control not only drug trafficking, but also the whole world. For these “elect”, as noted by John Coleman, drug trafficking is not an end in itself, but a means to achieve absolute world domination. The drug trade helps to solve the Committee of 300 tasks such as:


1) the receipt of money that can be used for bribing politicians, statesmen, military personnel, media representatives and other “necessary” people;

2) effective management of consciousness and behavior of people using drugs;

3) reducing the world population to required levels.

We emphasize again that the key institution of the third level are the banks. The owners of the largest of them members of the “Committee of three hundred”.


The stages of merging banks and drug cartels

Splicing of banks and groups involved in the drug trade, began long ago, about four centuries ago. In England it was an Alliance of British East India company (BOIC), which had a Royal license for the opium trade in India and other colonies of the Crown, and the first English banks. Among them — the Bank of England, Bank of Beringov, later the London Bank N. Rothschild and others. The history of the formation of the Alliance, first in Britain and then the world can learn from the book of John Coleman, “conspirators Hierarchy: the Committee of three Hundred”, which we have already quoted above.

Fast forward to closer to us times. The second world war was complicated by possible drug. In the middle of the twentieth century was the collapse of the British colonial system intensified the national liberation movement in the countries of the “third” world, which has violated existing international drug trafficking.

In socialist China was hit by the drug trade (which flourished there before that for over two centuries). Economic and financial exchanges between countries retained significant barriers that emerged during times of economic crisis and depression of the 1930s, Finally, the countries of the socialist camp is almost completely eliminated drug addiction in their territories.

However, in the Western hemisphere (North and South America) the drug mafia has not suffered significant losses. There banks have been active in providing “services” for “laundering” drug money. For example, in 1950, became known facts of direct participation of the American Bank of Morgan(“Morgan guaranty trust”) and the Rockefellers (“chase Manhattan Bank”) money laundering by international drug major with centers in Cali and Medellin[42]. However, the banking system in General, even in the Western hemisphere at the time could function without the drug.

In the beginning of 2012 the former Deputy Secretary General of the UN and at the same time the former Director of the office on drugs and crime Antonio Costa gave an interview in which he outlined the main stages in the formation of the Alliance of the banks and the drug mafia in the postwar period (four phases)[43].

According to him, the Alliance of the banks and the drug mafia began to take shape in the 60-70s (the first stage). A. Costa said: “At the time, mafia was holding a large cash, though not as much as now, due to the fact that international crime has achieved such scale as now. It refers mainly to Italian, North American and a number of other criminal gangs, which involved a narrow range of criminal elements”.

The second stage, according to A. Costa, began with the late 70’s-early 80-ies: “And along with the progressive opening of borders, the expansion of relations and business in the late 70’s — early 80’s organized crime, which has also taken root outside of Italy, started to use the banking system for the transfer of accounts and move money around the world.”

Note that this period corresponds to the years when in the U.S. at full capacity earned money “printing” machine (after the dismantling of the Bretton woods monetary system), begins a significant liberalization of the international movement of money (the removal of restrictions on cross-border movement of capital in many Western countries), rapidly growing global financial market, created offshore companies in different parts of the world. The state begins to “withdraw” from the economy (remember the so-called “Thatcherism” in Britain and “Reaganomics” in the USA). All this gave organized crime (including drug cartels) the ability to create its international financial network.

The third stage A. Costa connects with the creation of economically developed countries in the international system for the prevention of money laundering. The extent of the laundering began to threaten the internal stability of the countries of the West. The special role he assigns created at this time such an institution as the Financial Action Task Force (FATF — financial action against money laundering). A. Costa notes that at this time has managed to achieve visible success in the fight against money laundering by the mafia: “Possessing special powers, the FATF has begun active actions…

These special powers were slowly, slowly, rise, to lead, at least in major financial institutions on both sides of the Atlantic, to some positive results. As a result, money laundering through the banking system have decreased significantly”. This stage in the scheme A. Costa covers the 90-ies of the last century.

I can not fully agree with the fact that the last decade of the last century was a period of successful offensive against the global mafia. Local successes actually took place. Many countries that were in the area of the “Golden billion” (member countries of the Organization for economic cooperation and development) in the 1990s enacted laws to combat the “laundering” of money[44]. “Washing” drug money in some Western countries really decreased.

However, the centres “washing” has moved to the third world, new offshore, and in the former socialist countries, the authorities began to actively dismantle the system of state control over domestic and international financial flows.

We should not forget that the 1990s was the peak of the so-called globalization. This word was hidden full liberalization of trade and financial linkages of countries opening their borders for goods, money, information and people. An important milestone of globalization was the creation in 1995 of the world trade organization (WTO), which was mandated to final dismantling of state borders.

And what are the implications of this globalization? Interpol gave a short reply: “What good free trade is good for criminals”[45]. Specialist in organized crime M. Glenny in his book “Shadow lords: who rules the world” is trying to convey the main idea: the United global market has tremendously accelerated the criminals. Here is just one quote, deciphering this conclusion: “In the late 80-ies of the West undertook the liberalization of its financial markets… was abolished one of the main prerogatives of the national state — sovereign control over incoming and outgoing financial flows.

Perhaps Microsoft still has a symbolic connection with the country, and they were favourite places for head offices, but now they wanted to be present and take root wherever it has only been beneficial. And globalization began. In international criminal underground clapped open a bottle of champagne… the Rapid growth of organized crime… was inextricably linked with globalization — it was here in the huge reservoirs of the international banking system, mixed the liquid assets of the corporate world and organized crime”[46]. That is also the opinion of famous Russian specialist in the field of international organized crime, the former head of the Russian Bureau of Interpol Vladimir ovchinsky, who called globalization “criminal”[47].

It is also important to note: at the junction of the 80-ies — 90-ies of the last century was the collapse of the USSR and the socialist camp. For the global drug has opened exciting prospects for the development of new markets of goods. M. Glenny writes: “While the American cocaine market was approaching the saturation point, the Soviet Union collapsed, and its fall became the Colombian cartels gift of heaven. Suddenly opened the possibility for the prosperity of the European market and the ways that it had”[48]. The capture of the Russian market of the world drug mafia in the 1990s is a very important and extensive topic, beyond the scope of this work.

The fourth stage began about ten years ago, it is characterized by a growing and threatening the strengthening of the Alliance of the banks and the drug mafia in the international scale, and the previous successes of national authorities and international organizations in the fight against money laundering were reversed. A. Costa: “a Few years later (2002-2003) came the first wave of the crisis and the banking system, which as a result of globalization has grown enormously, again subjected to infiltration by criminal elements.

The control of money laundering, which was effectively implemented in Europe and North America in the 90-ies, was considerably weakened by the jurisdiction for many offshore areas, which was more underdeveloped. This marked the beginning of a new cycle of penetration of crime money”. And then A. Costa gives the example of us Bank “Wachovia” that over a period of three years was able to launder almost $ 400 billion.

The global financial crisis, as noted by A. Costa, led to even greater consolidation of banks and cartels: “the Financial crisis of 2008 affected the entire transatlantic banking sector. Illiquidity in conjunction with the banking crisis, the reluctance of banks sujiwath money to each other and so forth, provided an excellent case of criminal structures, which have received huge financial power at the expense of money that could not be laundered through the banking system in earlier years.

In 2008-2011, the demand for cash of the banking sector and the liquidity of organized crime provided an extraordinary opportunity for the penetration of organized crime in banking sector”.

Speaking of splicing of the drug cartels and the banks, it should be noted that it is the process of oncoming traffic. Banks of global scale are looking for drug money around the world, the lords offered their “services” laundering “dirty” money and their subsequent placement in the “white” sector of the economy. Drug cartels, developing and implementing its investment policy, as priority areas of investment considering the banking sector.

Above we mentioned the example of the Colombian drug cartel of Kali group. Misha Glenny writes about this group: “the First area that I decided to invest the Cali cartel, were banks. In 1974, the Cartel has created its own El Banco de los Trabajadores (“workers ‘ Bank”) and began to buy shares in banks throughout Central and South America and had close ties with banks in new York and Miami, including Manufacturer Hannover and Chase Manhattan”[49].


Splicing of the drug business and the banks as the last stage of capitalism

Today, at the beginning of the XXI century is becoming clear and clear that even recently caught the eye: the current financial and banking system has become the strongest “drug” dependence on the criminal trafficking of heroin and cocaine. Classical capitalism developed into its highest and final stage, which can be callednarkomovsky capitalism.

Already mentioned by us James Petras describes the transition of capitalism in this highest stage: “Based on political bribery neo-liberal policies of deregulation of the 1990s led to social disintegration, criminalization and militarization of the 2000s Narco-financial economy is the most advanced, the highest stage of neo-liberalism”[50].

There is a real danger that this latest stage of capitalism may also be the last page of human history. To prevent this from happening, it is necessary a radical reform of all aspects of public life.

Obviously long overdue and is acute need of restructuring the financial and banking system. The dreadful reminder of this was the global financial crisis 2007-2009 To date, there are already many different projects such adjustment. Without going into deep evaluation, should call their common drawback: they ignore the current state of “drug” according to the financial and banking system from “white gold”. According to the former head of the UN office on drugs and crime A. Costa, to dismantle the modern financial and banking system, it is necessary to organize a frontal attack not only on the drug mafia, but the entire transnational organized crime[51].

No less urgent is the task of combating international drug trafficking, which over several decades can destroy a large part of the population of the planet. This area also has many good ideas and projects. At the level of individual States and at the global level. But they have one drawback: they do not account for the organic bonding of drug with the world Bank, the needs of the modern moneylenders in “dirty” money. Banks join forces to prevent destruction of the drug trade, and the place of each destroyed the cartel will create two new.

Hence the conclusion: we must struggle with narkomovsky capitalism as an organic unity drug and financial-banking business. It requires a serious realignment of human thinking, education, governance, the work of international organizations.

People who decades of his life devoted to the war on drugs come to the inevitable conclusion: the effective elimination of the threat of the “white death” is possible only through a radical restructuring of the financial and banking system. This is acknowledged in particular, Antonio Costa after he left the post of Deputy Secretary-General of the UN and UN Department on drugs and crime. He said: “Our government needs to be able to eliminate the link between these criminals and the bankers”[52].

Above we referred to an interesting report of the head of Rosenergocontract V. Ivanov in Washington. In the final part of the report, he said, “we need to take drastic consolidation of the governments of the leading States for the organization of anti-drug coalition that would act against global drug trafficking and in close cooperation with politicians, economists and financiers. Obviously, for the elimination of global drug trafficking will require a radical transformation of the global financial system . (my italics. — V. K.)”[53].

The correct conclusion and bold, but still intermediate. Because “radical transformation of the global financial system” in the framework of modern capitalist civilization is impossible in principle. To exit beyond the limits of this civilization needs radical restructuring of all spheres of public life and of the man himself. But this is already the topic of much discussion.


Source and links here.

From the book by V. Katasonova Y. “the Dictatorship of bankocracy. Organized crime financial and banking world. How to confront financial bondage”.




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