Republicans' Phony Outrage at DEA Money Laundering Activities

By Jeralyn, Section Crime Policy
Posted on Sat Dec 10, 2011 at 08:20:00 AM EST
Tags: money laundering (all tags)

Share This: Digg!

The height of Republican hypocrisy is the phony outrage of Congressman Darryl Issa at the DEA's money laundering stings, particularly in Mexico. These stings are as old as the hills and well-publicized. (Issa's absurd letter to AG Eric Holder is here.) Even Fox News says he's missed the boat on this one.

The Justice Department and the State Department acknowledged the laundering this week. The DEA issued this statement earlier this week confirming it.

Why wouldn't they? DEA, the IRS and Customs (now ICE) have been engaging in undercover laundering of proceeds for drug traffickers at least since Ronald Reagan was President. Republicans crowed about the stings then. [More...]

The money laundering statute expressly provides for stings. From the U.S. Attorney's Manual:

Section 1956(a)(3) relates to undercover operations where the financial transaction involves property represented to be proceeds of specified unlawful activity. The proceeds in § 1956(a)(3) cases are not actually derived from a real crime; they are undercover funds supplied by the Government. The representation must be made by or authorized by a Federal officer with authority to investigate or prosecute money laundering violations. The representation may also be made by another at the direction of or approval of a Federal officer.

The money laundering statute also provides for extra-territorial jurisdiction (see 1956(b)(2).

Here are the guidelines from the IRS Manual, Section 9.5.5.2.1.3 (08-27-2007)"Title 18