[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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