[Congressional Record Volume 144, Number 82 (Monday, June 22, 1998)]
[House]
[Pages H4892-H4896]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
[[Page H4892]]
SENSE OF CONGRESS THAT UNITED STATES SHOULD SUPPORT FEDERAL LAW
ENFORCEMENT AGENTS' EFFORTS REGARDING MEXICAN FINANCIAL INSTITUTIONS
Mr. McCOLLUM. Mr. Speaker, I move to suspend the rules and agree to
the concurrent resolution (H. Con. Res. 288) expressing the sense of
the Congress that the United States should support the efforts of
Federal law enforcement agents engaged in investigation and prosecution
of money laundering associated with Mexican financial institutions.
The Clerk read as follows:
H. Con. Res. 288
Whereas, Mexico is an important ally of the United States
and these countries' economies, cultures, and security
interests are permanently intertwined;
Whereas illegal drugs continue to destroy our cities and
kill our children, the illegal international narcotics trade
poses a direct and pernicious threat to the vital national
interests of the United States, and combating this threat is
one of our Nation's highest priorities;
Whereas Mexico is one of the major source countries for
narcotic drugs and other controlled substances entering the
United States;
Whereas criminal organizations engage in money laundering
to reap the financial benefits of the illegal narcotics trade
and combating money laundering is a necessary and integral
part of a national strategy to combat the narcotics trade;
Whereas Mexico is currently unable to limit meaningfully
the laundering of drug proceeds in its financial
institutions, as noted in the Department of State's 1997
International Narcotics Control Strategy Report, which
indicates that Mexico ``continues to be the money laundering
haven of choice for the transportation of US cash drug
proceeds'';
Whereas, despite the commitment of President Zedillo to
combat drug trafficking and money laundering, the Government
of Mexico ``acknowledges that narcotics-related corruption is
pervasive and entrenched within the criminal justice system
and that it has spread beyond that sector'', as demonstrated
by the February 1997 arrest of the chief of Mexico's National
Counternarcotics Institute on charges of accepting bribes
from, and complicity with, the drug cartels, shortly after
receiving confidential briefings from United States law
enforcement agencies;
Whereas progressively more violent, organized, and
widespread illegal drug operations constitute a threat not
only to the health and well-being of the Mexican people but
also to the integrity of the Mexican Government and its law
enforcement agencies;
Whereas the vast majority of people and public servants in
Mexico support ridding their country of this dark and
sinister threat;
Whereas the United States Customs Service, in conjunction
with other United States law enforcement agencies, recently
concluded ``Operation Casablanca'', the largest undercover
money laundering investigation in the history of the United
States, in which over 100 persons were arrested and 3 Mexican
financial institutions were indicted;
Whereas Operation Casablanca is in the interest of the
people of the United States, as it strikes a direct blow
against the laundering of the proceeds of illegal drug sales
in Mexican financial institutions and is necessary for an
effective effort against money laundering in the United
States;
Whereas United States law enforcement agents participating
in Operation Casablanca placed themselves in peril of severe
injury or death in order to combat the illegal narcotics
trade;
Whereas recently the Government of Mexico has reportedly
announced a desire to investigate and possibly prosecute
United States law enforcement officials involved in Operation
Casablanca on the ground that United States law enforcement
agents allegedly operated on Mexican soil without prior
notification of the Government of Mexico;
Whereas the Government of Mexico had been notified of the
broad concept but not details of a money laundering
investigation; whereas notification of details could have
jeopardized the safety of United States law enforcement
officials; and
Whereas notification to foreign governments of the
specifics of undercover money laundering investigations
conducted by the United States could, under certain
circumstances, render ineffective such investigations, which
would be contrary to the interests of the United States: Now,
therefore, be it
Resolved by the House of Representatives (the Senate
concurring), That it is the sense of the Congress that--
(1) undercover law enforcement investigations, including
under appropriate circumstances sting operations, are
necessary to counter increasingly sophisticated money
laundering schemes that involve financial institutions in
this country and other countries, including Mexico; and
(2) the United States should not agree to extradite to
Mexico United States law enforcement agents involved in
Operation Casablanca for actions taken within the scope of
Operation Casablanca.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Florida (Mr. McCollum) and the gentleman from Michigan (Mr. Conyers)
each will control 20 minutes.
The Chair recognizes the gentleman from Florida (Mr. McCollum).
General Leave
Mr. McCOLLUM. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks on the concurrent resolution under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Florida?
There was no objection.
Mr. McCOLLUM. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, this resolution expresses the sense of the Congress that
the United States should support the efforts of Federal law enforcement
agents engaged in the investigation and prosecution of money laundering
associated with Mexican financial institutions.
I want to commend my good friend, the gentleman from Alabama (Mr.
Bachus), the chairman of the Committee on Banking and Financial
Services' Subcommittee on General Oversight and Investigations, for
introducing this important legislation and for his leadership on this
issue.
The United States and all the western democracies are under attack
from a global problem that only grows worse and more complex by the
day, money laundering. Every day throughout the United States and
around the world narcotraffickers and organized crime syndicates engage
in thousands of financial transactions to conceal their ill-gotten
gains. These international criminal organizations are driven by greed,
and the laundering of their proceeds is their only pathway to profit.
The magnitude of the money laundering problem can only be grasped in
relation to the global drug problem. The illegal drug business is now
estimated to generate $800 billion to $1 trillion annually in sales,
more than the entire global petrochemical industry.
Such a magnitude of drug-tainted money poses a constant threat of
political corruption and destabilization around the world. More than
600 metric tons of cocaine are trafficked from South America each year,
of which nearly 500 metric tons are destined for the United States.
Columbian heroin, with unprecedented purity and low prices, is showing
up around the country. Mexican drug gangs have grown so strong and
sophisticated they now rival Columbian cartels, and pose what DEA
administrator Tom Constantine has called the premier law enforcement
threat facing the United States today.
Hand-in-hand with the growth of these sophisticated international
drug trafficking organizations has come the growth of money laundering.
Today money laundering has reached alarming and unprecedented levels on
both the national and international level. It is now estimated by law
enforcement and banking officials that as much as $500 billion, or 2
percent of the global domestic product, is laundered each year.
The law enforcement challenge throughout the world is daunting.
Consider the challenge posed by the money transmitting business. The
world's intricate wire transfer system moves over $2 trillion a day,
involving more than 500,000 transactions.
As law enforcement has sought to uncover and prosecute money
laundering over the years, the methods used by drug organizations to
launder their money have grown increasingly complex and exotic.
Criminals who commit crimes abroad are using the U.S. and its financial
institutions as havens for laundered funds, at the same time as
criminals are committing offenses in the U.S. and using foreign banks
and banks' secrecy jurisdictions to conceal the proceeds of their
crimes.
In short, today's sophisticated and well-financed criminals respect
no international border. The problem is particularly acute in Mexico,
which, according to the U.S. State Department, and I quote, ``Continues
to be the money laundering haven of choice for the transportation of
cash drug proceeds.''
As such, Mexico is a vital if not the vital link in the international
crime chain which now spans the globe and
[[Page H4893]]
threatens economic and political stability around the world.
It is against this backdrop that the United States law enforcement
agencies, led by the United States Customs Service, carried out an
extensive 3-year undercover money laundering investigation of certain
Mexican financial institutions and individuals. The investigation led
to the arrest of 167 people, the indictment of three Mexican banks, the
seizure of $110 million, and several tons of drugs.
In supporting this resolution, there are a few points that need to be
made. First, at the same time that I support the resolution, I support
the Mexican government's efforts to address the drug crisis. I believe
the Mexican government is making gains in its counternarcotics effort.
I have reached this conclusion after spending time in Mexico carefully
examining the counter drug programs underway and being developed. More
must be done, but I believe the Mexican government is moving in the
right direction.
Second, in supporting this resolution, I am not somehow condemning
Mexico. As the resolution makes clear, Mexico is an important ally of
the United States, and these two countries' economies, cultures, and
security interests are permanently intertwined.
Rather, in supporting the resolution, I am supporting U.S. law
enforcement agents who place their lives in danger in an effort to
confront the international drug epidemic engulfing our country and
children. I am supporting the U.S. law enforcement agencies, whose
careful planning and execution led to the largest and most important
money laundering investigation in the United States history, and I am
joining Americans and Mexicans and citizens from around the globe in
condemning those who knowingly assist drug traffickers to launder their
profits.
It does not matter what your nationality is, if you aid and abet
those who traffic to launder their blood-stained drug money, you
deserve the unequivocal condemnation of the international community,
and should be vigorously investigated and prosecuted to the full extent
of the law.
Mr. Speaker, nothing poses a greater threat to democratic
institutions around the world than the drug epidemic and drug
corruption. Simply put, money laundering is the enemy of the rule of
law, and we must support its vigorous prosecution wherever and whenever
it is uncovered.
Mr. Speaker, I reserve the balance of my time.
Mr. CONYERS. Mr. Speaker, I yield 3 minutes to the gentleman from
Texas (Mr. Reyes).
Mr. REYES. Mr. Speaker, I thank the gentleman for yielding time to
me.
Mr. Speaker, I rise this afternoon in support of this resolution, but
I also rise to let Members know and understand that there are things
that are very important that are included in this resolution, and there
are issues that are confrontational that I think are counterproductive.
As a former law enforcement officer who conducted and supervised
undercover operations and investigations along our Nation's border, I
can certainly appreciate the intent of this resolution.
{time} 1430
Let me state in the strongest possible terms that the extradition of
our U.S. Customs agents should never even be an issue. They were doing
their jobs. They effectively did their jobs to the extent that people
that are guilty of money laundering are under arrest and will be tried
soon. Undercover law enforcement investigations, including sting
operations, are a necessary component of our national security and we
must protect the agents that are involved always.
Operation Casablanca was a success, and we should congratulate the
men and women of the United States Customs Service. Three prominent
Mexican banks and 26 Mexican bankers have been indicted, and more than
8,000 pounds of marijuana and 4,000 pounds of cocaine have been seized
during the course of this investigation.
Mr. Speaker, I rise this afternoon in support of this resolution.
However, I do have some reservations with the language of the
resolution in its current context. In my view, this is just an
opportunity for some to attack Mexico once again, instead of fomenting
an understanding and hopefully working with our counterparts to have
them understand the seriousness and the importance of operations such
as this that decommission organizations that are a threat to the
national security of both the United States and Mexico.
I liken some of the language the same as we annually get into in the
certification process. The language of this resolution does not
constructively, in my opinion, engage Mexico. It engages in a lot more
fingerpointing. I think that instead of blaming Mexico for feeding this
Nation's $50 billion a year drug habit, I would encourage all of my
colleagues to engage our neighbors to the south in constructive
dialogue.
Mr. Speaker, I spent this weekend with 13 of my colleagues from
Congress and 20 of our counterparts from the Mexican Parliament at the
37th Annual U.S./Mexico Interparliamentary Meeting in Morelia,
Michoacan, Mexico. We discussed this very issue. I think we discussed
it perhaps an hour longer than we should have.
Part of what we need to do as Members of Congress is engage in a
constructive dialogue with our counterparts. We left Morelia,
Michoacan, Mexico, with a better understanding of each other and we
pledged to continue to work throughout this year to make sure that each
of us understands the challenge, each of us understands the dynamics,
and most importantly, each one of us has the ability to engage in
constructive dialogue to the benefit of both the United States and
Mexico.
Mr. Speaker, I think that this afternoon as we stand here and engage
in dialogue about this resolution, which is vitally important to the
men and women that serve this country in a law enforcement capacity, I
think we should keep one thing in perspective. That is that we have two
arenas to concern ourselves with. The first one is the arena where
agents of both countries engage in an operational manner to protect our
constituents. The second one is the political arena where much is said,
but very little is accomplished because of fingerpointing.
Mr. Speaker, I hope we keep things in perspective. I hope we are able
to engage in constructive dialogue.
Mr. McCOLLUM. Mr. Speaker, I yield 6\1/2\ minutes to the gentleman
from Alabama (Mr. Bachus), the author of this resolution.
Mr. BACHUS. Mr. Speaker, I thank the gentleman from Florida (Mr.
McCollum) for yielding me this time, and I thank the gentleman from
Texas (Mr. Reyes) for his comments. I will tell the gentleman that he
and I share some of the same concerns.
In fact, I served as Assistant Attorney General and legal counsel for
a State agency that seized more drugs 2 straight years than any other
State agency in the United States. Unfortunately, most of those drugs
made their way through Mexico.
Mr. Speaker, we do have to be in partnership with Mexico, and I hope
that this resolution brings a greater understanding, particularly when
the Mexican Government has indicated that they may ask for extradition
of our agents. I am glad that the gentleman from Texas agrees that that
is inappropriate.
Mr. Speaker, I rise in support of this resolution. The gentleman from
Florida (Chairman McCollum) has already said that it expresses the
support of the House for our enforcement agencies involved in the
successful money laundering investigation, code named Operation
Casablanca, and it expresses the view of the House that it would be
inappropriate and indefensible to accept any request from the Mexican
Government that these courageous American agents be extradited.
Operation Casablanca was announced last month by the Treasury and
Justice Departments and it was the largest money laundering
investigation in the history of the United States. Three things are
clear. First, the drug trade is a scourge on both the United States and
Mexico, and the people of both nations are committed to fighting this
threat.
Second, Operation Casablanca struck a major blow to the Colombian and
Mexican drug cartels and their dirty money men.
[[Page H4894]]
Finally, the U.S. Customs agents who placed their lives on the line
to conduct this operation should be commended, not threatened with
prosecution.
As chairman of the Subcommittee on General Oversight and
Investigations of the House Committee on Banking and Financial
Services, I have conducted several hearings to examine money
laundering, including one September 1996 to examine the issue of money
laundering in Mexican financial institutions.
That hearing painted a quite disturbing picture. The drug thugs who
have caused harm in virtually every American community have essentially
two choices after they receive cash for their poisonous product. They
can smuggle the money out as cash or they can utilize financial
institutions through ``smurfing,'' peso brokering, and other
techniques.
Our United States banks and other financial institutions have done a
fairly good job of closing the front door to money laundering by
rigorous enforcement of the Bank Secrecy Act. However, it is a
different story in Mexico.
The bottom line is that once drug proceeds cross the border, it is
virtually impossible to trace them and money laundering is done with
ease. This year, the State Department's International Narcotics Control
Strategy Report states, ``Mexico continues to be the money laundering
haven of choice for the transportation of U.S. cash drug proceeds.''
Mexico has recently enacted money laundering legislation, but it
neither has the regulatory infrastructure nor the reliable personnel at
this time to enforce those rules. Our best strategy in the short run is
law enforcement infiltration of criminal organizations and corrupt
financial institutions.
That is what Operation Casablanca did, and that is why Operation
Casablanca is so significant. The Customs Service and other agents are
to be commended for undertaking this risky but courageous
investigation. In one operation, our Customs Service was able to
penetrate high into the Mexican and Colombian criminal organizations
and flush out many of the financial institutions and banks serving
them.
Over a dozen Mexican and Venezuelan banks were implicated. It will be
some time before the banking friends of the narco-traffickers feel
laundering for the cartels is a relatively risk-free way to make a
dirty fortune.
We do not know all the details about Operation Casablanca. We do know
that Mexican authorities were notified of the Casablanca probe, but
were not notified of all the details. That is because specific
information would have endangered the lives of our law enforcement
agents. The sad reality is that we cannot do this type of operation at
this time and share specific information with Mexico. Neither can we
halt the war against the drug cartels.
We would not tolerate missiles being stationed in Mexico and aimed at
the United States. The drug threat is every bit as sinister.
In conclusion, Operation Casablanca will prove to be a watershed
event in our joint fight against drugs. Mexico can no longer remain in
a state of denial about complicity of their financial institutions with
the drug trade. In the short run, it was an embarrassment for Mexico,
as demonstrated by their angry reaction. While their shock is
predictable, their threats against U.S. law enforcement agents was
disappointing and should not be given credence.
It is truly outrageous for the Government of Mexico to threaten to
seek extradition of our law enforcement agents, even reportedly going
to the ludicrous extreme of offering to swap narco-traffickers for law
enforcement agents. United States agents place their lives on the line.
We in Washington should never lose sight of the fact that the drug
cartel operation is not fought by paper-pushers here in Washington, but
by men and women of our law enforcement agencies who are out on the
front lines.
It is a mystery to me why the administration and the State Department
have not put forth stronger statements in support of our law
enforcement agencies. But if they will not take the lead in supporting
our agents, Congress must.
Democrats, Republicans and Independents have joined together in
cosponsoring this legislation. This morning every Member received a
letter from the gentleman from New York (Mr. Hinchey), a New York
Democrat; the gentleman from Vermont (Mr. Sanders), the House's only
Independent; and myself urging all Members to support this resolution.
Twelve other Democratic cosponsors have joined us.
Mr. Speaker, I hope the United States and Mexico will work together
and not let drug fighting take a back seat to diplomatic and political
concerns. The bottom line is that our law enforcement agents should not
be prosecuted or even threatened for fighting the drug thugs.
Mr. CONYERS. Mr. Speaker, I yield such time as he may consume to the
gentleman from Massachusetts (Mr. Delahunt), himself a former
prosecutor.
Mr. DELAHUNT. Mr. Speaker, I did not intend to speak to this
particular resolution, I am here on another matter. But I think it is
important for me to comment on the fact that I too attended, along with
the gentleman from Texas (Mr. Reyes), my friend, the Interparliamentary
Conference that occurred this past weekend in Morelia, Mexico, where
this issue received considerable discussion among Members of Congress
and our counterparts in the Mexican Parliament.
I was very pleased to hear the statement by the gentleman from
Florida (Mr. McCollum) chairman of the Subcommittee on Crime, regarding
the, should I say ``improvement'' in terms of the activity of the
Mexican officials regarding drug trafficking.
I sensed a sincere and genuine commitment to a cooperative joint
effort to deal with the issues surrounding drug trafficking. So I think
it was important that the gentleman from Florida included that in his
remarks, and I wish to associate myself with them.
Mr. Speaker, I would state that last year I voted against
certification. But after my experience this weekend, I intend to join
the chair of the Subcommittee on Crime in supporting certification,
because I think what I gleaned from our discussions was very, very
positive.
At the same time, the issue of Operation Casablanca was raised. I
wish to publicly state and commend the gentleman from New York (Mr.
Gilman), the chair of the Committee on International Relations, for a
very forthright and clear and unequivocal statement regarding the
position of Congress and the assembled Members of the United States
delegation in our adamant opposition to any consideration of
extradition of any U.S. agent involved in this particular undertaking.
I wish to make that a matter of record and commend the gentleman from
New York for his insistence that that is simply untenable in terms of
the United States Congress.
Again, I think it was clear to me as the gentleman from Alabama (Mr.
Bachus) just indicated, that there are many factual facts that are
still unclear, that the question is still murky in terms of the
notification. And it might be appropriate for us to communicate with
the administration and with the appropriate counterparts in the Mexican
Government to determine what constitutes adequate notification, because
it is clear that notice was given at the very highest levels of the
Mexican law enforcement apparatus.
{time} 1445
However, it would appear that that information did not receive any
further dissemination, which I suggest and submit might very well be
entirely appropriate, given the covert and sensitive nature of, in
fact, what was occurring, particularly in light of the fact that in
these kinds of operations there is a high risk of personal safety and
potential loss of life to any U.S. agent or any informant that might be
cooperating with law enforcement.
I also think it is important to understand, too, that while we talk
about Mexico, in fact 90 percent of the illegal activity that was
discovered and investigated occurred within our own boundaries. So I
just thought it was important for me to make those statements and to
acknowledge the leadership of the gentleman from New York (Mr. Gilman)
over the course of this weekend.
Mr. BACHUS. Mr. Speaker, will the gentleman yield?
[[Page H4895]]
Mr. DELAHUNT. I yield to the gentleman from Alabama.
Mr. BACHUS. What this resolution says, and I hope it was a message
that we carried to Mexico, is that this fight against narco-traffickers
is a dangerous one, and we simply do not need to let our law
enforcement agencies be made pawns in a diplomatic or political
struggle. I appreciate what the gentleman has said, but I think we
ought to make it clear that extradition is not an appropriate path.
Mr. DELAHUNT. Reclaiming my time, Mr. Speaker, I would suggest to the
gentleman that that, in fact, was the message that was delivered
forcefully and eloquently by the chairman of the Committee on
International Relations, the gentleman from New York (Mr. Gilman).
Mr. BACHUS. I thank the gentleman.
Mr. McCOLLUM. Mr. Speaker, I yield 5 minutes to the gentleman from
New York (Mr. Gilman), distinguished chairman of the Committee on
International Relations.
(Mr. GILMAN asked and was given permission to revise and extend his
remarks.)
Mr. GILMAN. Mr. Speaker, I rise in strong support of this resolution
before us, H. Con. Res. 288, that supports our U.S. law enforcement
efforts on the issue of drug traffickers' use of money laundering
through Mexican banking institutions. I want to strongly commend the
gentleman from Alabama (Mr. Bachus) for introducing this important
measure at a timely moment.
I want to take this opportunity to compliment our Customs Service for
a highly successful and important money laundering undercover
operation, code named Casablanca. All of us are proud of their
outstanding efforts to take the profit and benefit out of the illicit
drug trade which targets our communities, kills our youngsters.
Operation Casablanca benefited the interests of the people of both
Mexico and the United States.
This past weekend in Mexico I was pleased to join the gentleman from
Massachusetts (Mr. Delahunt) and the gentleman from Texas (Mr. Reyes)
at our annual interparliamentary meetings with the members of the
Mexican Congress. It was chaired by the gentleman from Arizona (Mr.
Kolbe) and the Senator from Kansas, Senator Pat Roberts, and we were
joined with a delegation of over 10 Members of both Congress and the
Senate where we had the opportunity to extensively discuss this serious
matter with our Mexican colleagues.
Many of our Mexican counterparts expressed opposition to our
Casablanca investigation, and while our Mexican colleagues were
concerned about one issue, the issue of Mexican sovereignty, as a
result of this operation, we reminded them of the much larger picture,
one that, if ignored, would be a grave and serious risk to both of our
nations.
We reminded our Mexican colleagues that the greatest threat to their
sovereignty and the sovereignty of many other free and democratic
Nations around the globe today is not operations like Casablanca. The
real threat is the continued trafficking of illicit drugs and the
inevitable violence and corruption which flows so freely from this
deadly, corrosive trade in narcotics.
The undercover Casablanca operation helped to destroy a major money
laundering ring of Colombian and Mexican drug dealers who were using
several Mexican banks and some high level bankers to launder and
disguise billions of dollars of their ill-gotten gains. The dirty drug-
related monies came from our streets, the streets of key U.S. cities
like Chicago, Los Angeles, Houston and New York. Millions of drug
dealer assets have also been seized, along with tons of illicit drugs.
In addition, the record needs to be clear that no U.S. government
sting money was used. It was all dirty drug money which was being
laundered.
The U.S. Customs Service did not entice, did not lure any Mexican
bankers into this web of crime and corruption. The corrupt Mexican
bankers all came to their attention either from drug dealers or other
Mexican bankers already engaged in money laundering for the two major
drug cartels.
Let it also be noted that the Deputy Attorney General of Mexico and a
high level Mexican treasury official were duly informed very early on
in the investigation by the U.S. Customs Service of this operation. The
Mexican authorities were even asked to help but never responded to our
Customs officials.
However, when the Casablanca operation was concluded and the copies
of the indictments were provided to Mexican authorities, it did result
in five Mexican bankers being arrested in Mexico, based upon U.S.
investigations.
Finally, the millions of dollars that this operation uncovered
flowing from our streets and communities from illicit drug trade
demonstrate how serious the challenge is from these drug dealers and
the corruption that they foster in the banking systems and on
democratic institutions around the globe.
In conclusion, let me say we need to provide support for and
encourage these investigative operations and not put blame on our
courageous investigators, and hope that we can achieve more concrete
support on both sides of the border in the future. By working together,
let us both, Mexico and the United States, be certain that the
sovereignty and integrity of both of our nations will be fully
protected and that our war against drugs will be even more effective.
Mr. CONYERS. Mr. Speaker, I have no further requests for time, and I
yield back the balance of my time.
Mr. McCOLLUM. Mr. Speaker, I yield myself such time as I may consume.
I just want to wrap the discussion up by again complementing the
gentleman from Alabama (Mr. Bachus) for creating this resolution. I
think it sends an important message to our law enforcement community as
much as anything else, especially to the Customs Service, that they
have done a job that needs to be praised. It is a job well done. And to
our neighbors to the south, I think it sends a message of our concerns
that continue while at the same time extending recognition of their
cooperation, the fact that they are indeed participating.
I do not know how many Members understood that the resolution
addresses a great deal of detail. I do not know how many understood
what Casablanca really was all about. I would just like to point out
that essentially what happens in money laundering like this and what
happened, as I understand it, in this case is that certain active drug
dealers in the United States with connections to Mexico and Colombia
decided to use some dummy accounts and some real accounts in American
banks in California to ship some funds down to Mexico.
They found some cooperative second tier bankers. I am not sure if
they found the top people. I do not think they did. I think we are
talking about some major banks in Mexico we would all be concerned
about if they were here. They found several of them, some bankers to
cooperate. And they sent this money back to the United States into some
legitimate looking accounts, again here in the country, that then
allowed them to forward the money ultimately on to sources such as
Colombia drug cartel leaders in a cleansed way, appearing to be all
legitimate transactions.
If not for the cooperation and assistance of these Mexican bankers,
who have been pointed out in detail today, there would not have been a
money laundering operation and the proceeds of the illegal drug sales
inside the United States would never have gotten back in a covered
fashion, in an obscure fashion, to those who committed the most heinous
of crimes, the producers and suppliers of these drugs in the source
countries. So while it is a little complicated in its essence, I
thought we ought to at least explain to anyone, our colleagues that
might be listening to this, how the operation worked. The very
complexity itself deserves attention, and the Treasury Department and
the Customs Service law enforcement officials deserve praise for their
efforts at meticulously documenting this trail and making it all come
to fruition as they did.
I strongly urge the adoption of this resolution. I support it, and I
appreciate very much the gentleman from Alabama offering it.
Mr. LaFALCE. Mr. Speaker, I rise in support of the Resolution offered
by the gentleman from Alabama and commend my colleague on the Banking
Committee for bringing this important issue to the attention of the
House of Representatives.
[[Page H4896]]
The testimony received by the Banking Committee in our June 11
hearing on Operation Casablanca demonstrated the courage and bravery of
the federal agents who literally risked their lives by operating an
anti-money laundering scheme involving some of the most dangerous and
vicious drug dealers in the world. It is indeed fitting that we put the
House of Representatives on record against any extradition proceedings
involving these courageous men and women.
This resolution raises another issue. Operation Casablanca was
successful because of the growing effectiveness of our nation's anti-
money laundering policies. The financial services industry must report
deposits and withdrawals of cash in excess of $10,000 and financial
institutions must file suspicious activity reports consistent with
their ``Know Your Customer'' guidelines. Only with these programs in
place could the criminals be convinced that Operation Casablanca was
real.
And finally, the well planned coordination and cooperation between a
number of Department of Treasury and Department of Justice law
enforcement agencies permitted the sting operation to work as designed.
I commend not only the agents in the field but the supervisors and
management teams throughout the Administration who are making money
laundering a crime that just doesn't pay.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Nethercutt). The question is on the
motion offered by the gentleman from Florida (Mr. McCollum) that the
House suspend the rules and agree to the concurrent resolution, H. Con.
Res. 288.
The question was taken.
Mr. McCOLLUM. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 5 of rule I and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
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