U.S., Colombia Arrest 24 People in Drug, Money-Laundering Scheme

Drug money laundered through Colombian peso exchange, ICE announced

U.S. and Colombian authorities have arrested 24 suspects for allegedly laundering drug proceeds through an illegal money exchange market in Colombia, the U.S. Immigration and Customs Enforcement (ICE) agency announced.

In an April 27 statement, ICE said that in addition to laundering drug proceeds, those arrested also were charged with conspiracy to distribute controlled substances, and various other money laundering charges. The suspects face potential penalties of up to life imprisonment, said ICE, which is part of the U.S. Department of Homeland Security.

ICE said the U.S. investigation of the case, code-named Operation Rainmaker, indicated the drug organization laundered drug proceeds in several ways through what is known as the Black Market Peso Exchange. ICE describes the peso exchange as a decades-old money-laundering scheme that handles billions of dollars' worth of illicit funds annually. It is among the primary means by which Colombian drug cartels convert their U.S.-based drug dollars into "clean" pesos that they can use in Colombia.

ICE director Julie Myers said the Black Market Peso Exchange "blurs the line between crime and commerce, using global trade to mask international money laundering. This [Operation Rainmaker] investigation demonstrates what can be achieved when law enforcement agencies at home and abroad work together to target this sophisticated form of money laundering." (See related article.)

During the course of the investigation, more than $7.5 million in alleged drug proceeds, more than 24 kilograms of cocaine, and more than 2 kilograms of heroin were seized.

A total of 30 people were charged in indictments with participating in the laundering scheme, but six of those individuals have not yet been arrested. They remain fugitives from the law. Eight of the defendants in the case were arrested in Colombia by Colombian law authorities. ICE said the United States will seek their extradition from Colombia. The remaining 16 defendants were arrested by U.S. authorities in various U.S. locations.

A recently released U.S. State Department report says Colombia is the source of over 90 percent of the cocaine entering the United States, and is also the focus of significant money laundering activity.

The 2006 International Narcotics Control Strategy Report, released March 1, said that even though drug use in Colombia is increasing, its government, with substantial U.S. support, has had notable success in combating the illegal drug trade and rebuilding Colombia's economy since its comprehensive national strategy, Plan Colombia, was instituted in 1999. (See related article.)

The section of the report on South America is available on the State Department Web site.

Source: U.S. Department of State

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