Federal Prosecutors Indict 38 Officials on Racketeering Charges
Washington D.C. - In a shocking move, federal prosecutors have indicted 38 officials with racketeering and other offenses, including violent extortion of individuals and businesses, loan sharking, narcotics trafficking, and operation of illegal gambling businesses.
The Indictment
The indictment, announced yesterday, also charged Thomas Tassiello, an associate of one family, with a string of racketeering, conspiracy to make and collect extortionate loans, operating an unlawful gambling business, and interstate transportation of stolen property.
Ongoing Investigations
According to the FBI, the investigations are ongoing. The agency works with 31,676 employees - including 12,977 Special Agents and 18,699 support staff - on a budget of $6.3 billion.
Money Laundering Threatens National Governments and International Relations
Money laundering, which is the process of concealing the source of illegally obtained funds, threatens national governments and international relations by corrupting officials and legal systems. It undermines free enterprise and threatens financial stability by crowding out the private sector.
The Effects of Money Laundering
A detailed study on money laundering literature identified 25 different effects of money laundering, including:
- Terrorism financing
- Threats to banking systems
- Corruption of officials and legal systems
- Undermining of free enterprise
- Threats to financial stability
Terrorism Financing
Money laundering serves as an important mode of terrorism financing. Terrorists have shown adaptability and opportunism in meeting their funding requirements. They use a wide variety of methods to move money within and between organizations, including:
- The financial sector
- Physical movement of cash by couriers
- Movement of goods through the trade system
Threat to Banking System
Banks have become a major target of money laundering operations and financial crime because they provide a variety of services and instruments that can be used to conceal the source of money. Though norms for record keeping, reporting, account opening, and transaction monitoring are being introduced by central banks across the globe, money launderers continue to use this channel to disguise the origin of funds.
International Cooperation
The FBI is working closely with international partners to combat money laundering and terrorist financing. The agency is also providing training to bankers and financial institutions to help them recognize suspicious transactions and prevent money laundering.
Further Action to be Taken
In light of these findings, further action will be taken to prevent and detect money laundering and terrorist financing. This includes:
- Increasing cooperation between law enforcement agencies
- Improving regulatory frameworks
- Enhancing public awareness about the risks associated with money laundering
Commitment to Combating Money Laundering and Terrorism Financing
The FBI remains committed to combating money laundering and terrorism financing, and we will continue to work tirelessly to protect our financial systems and national security.