[Senate Prints 107-22]
[From the U.S. Government Publishing Office]
107th Congress S. Prt.
1st Session COMMITTEE PRINT 107-22
_______________________________________________________________________
SUPPLEMENT TO THE FEBRUARY 5, 2001
REPORT ON CORRESPONDENT BANKING:
A GATEWAY FOR MONEY LAUNDERING
__________
R E P O R T
prepared by the
MINORITY STAFF
of the
PERMANENT SUBCOMMITTEE ON INVESTIGATIONS
of the
COMMITTEE ON GOVERNMENTAL AFFAIRS UNITED STATES SENATE
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CASE HISTORIES 8, 9 & 10
February 28, 2001
U.S. GOVERNMENT PRINTING OFFICE
71-167 WASHINGTON : 2001
COMMITTEE ON GOVERNMENTAL AFFAIRS
FRED THOMPSON, Tennessee, Chairman
TED STEVENS, Alaska JOSEPH I. LIEBERMAN, Connecticut
SUSAN M. COLLINS, Maine CARL LEVIN, Michigan
GEORGE V. VOINOVICH, Ohio DANIEL K. AKAKA, Hawaii
PETE V. DOMENICI, New Mexico RICHARD J. DURBIN, Illinois
THAD COCHRAN, Mississippi ROBERT G. TORRICELLI, New Jersey
JUDD GREGG, New Hampshire MAX CLELAND, Georgia
ROBERT F. BENNETT, Utah THOMAS R. CARPER, Delaware
JEAN CARNAHAN, Missouri
Hannah S. Sistare, Staff Director and Counsel
Joyce A. Rechtschaffen, Democratic Staff Director and Counsel
Darla D. Cassell, Chief Clerk
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PERMANENT SUBCOMMITTEE ON INVESTIGATIONS
SUSAN M. COLLINS, Maine, Chairman
TED STEVENS, Alaska CARL LEVIN, Michigan
GEORGE V. VOINOVICH, Ohio DANIEL K. AKAKA, Hawaii
PETE V. DOMENICI, New Mexico RICHARD J. DURBIN, Illinois
THAD COCHRAN, Mississippi MAX CLELAND, Georgia
Christopher A. Ford, Chief Counsel and Staff Director
Linda J. Gustitus, Minority Chief Counsel and Staff Director
Elise J. Bean, Minority Deputy Chief Counsel
Robert L. Roach, Minority Counsel and Chief Investigator
Mary D. Robertson, Chief Clerk
C O N T E N T S
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Page
VIII. Ten Case Histories Continued From February 5, 2001 Report
No. 8: Swiss American Bank and Swiss American National Bank...... 1
A. THE FACTS................................................. 1
(1) Ownership and Management.............................. 1
(2) Financial Information and Primary Activities.......... 3
(3) Correspondents........................................ 4
(4) Operations and Anti-Money Laundering Controls......... 4
(5) Regulatory Oversight.................................. 5
(6) Money Laundering and Fraud Involving SAB/SANB......... 5
(a) Controversial Leadership........................... 5
(b) The Fitzgerald Case--Drugs and Terrorist Money..... 8
(c) The Gherman Fraud.................................. 13
(d) The DeBella Fraud.................................. 15
(e) The Fortuna Alliance Fraud......................... 20
(f) Other Frauds/Questionable Accounts................. 23
(g) Internet Gambling/Sports Betting................... 24
(7) Correspondent Accounts at U.S. Banks.................. 25
(a) Bank of New York................................... 25
(b) Bank of America.................................... 36
(c) Chase Manhattan Bank............................... 44
B. THE ISSUES................................................ 60
No. 9 and No. 10: M.A. Bank and Federal Bank..................... 63
A. THE FACTS................................................. 64
M.A. Bank
(1) M.A. Bank Ownership and Management.................... 64
(2) Financial Information and Primary Activities.......... 65
(3) M.A. Bank's Correspondents............................ 66
(4) M.A. Bank's Operations and Anti-Money Laundering
Controls................................................... 66
(5) Regulatory Oversight.................................. 67
(6) Money Laundering and Fraud Involving M.A. Bank........ 68
(a) Laundering of Drug Proceeds through M.A. Bank...... 68
(b) Unsound and Illegal Banking Practices.............. 72
(7) Correspondent Account at Citibank..................... 77
Federal Bank
(1) Grupo Moneta and Banco Republica...................... 89
(2) Federal Bank Ownership................................ 90
(3) Financial Information and Primary Activities.......... 91
(4) CEI................................................... 93
(5) Correspondent Account at Citibank..................... 94
(6) Regulatory Oversight.................................. 96
(7) Central Bank of Argentina Concerns.................... 97
(8) American Exchange Company............................. 104
(9) Suspicious Activity At Federal Bank................... 105
B. THE ISSUES................................................ 110
EXHIBITS..................................................... 113
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