"PICHARDO",Please See Page 16,"Diario Libre" Today,Monday,April,2nd.

Criss Colon

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"PICHARDO",Please See Page 16,"Diario Libre" Today,Monday,April,2nd.

"Basically:
Drug Trafickers reactivate routes Carribean Routes.
The income from drugs now is higher than the income from the formal economy.
"South American Drug Trafickers" use the region to "Launder Money"(Read "Launder Money",as "BUILD MALLS!)
"Spin Time" "Senor Giro"!:p
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waytogo

Moderator - North Coast Forum
Apr 3, 2009
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Santiago DR
"Basically:
Drug Trafickers reactivate routes Carribean Routes.
The income from drugs now is higher than the income from the formal economy.
"South American Drug Trafickers" use the region to "Launder Money"(Read "Launder Money",as "BUILD MALLS!)
"Spin Time" "Senor Giro"!:p
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I told Don a MONTH ago, where do you think the drug money is going....into these new.....
........................... "EMPTY MALLS"..........................

B in Santiago
 

Criss Colon

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"Malls",highrise apt. buildings too.
They don't have to have any customers,or buyers,or tenants,they just have to be built!
"Rub-A-DUBDUB",the DRs In The TUB"!
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Expat13

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Jun 7, 2008
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And I thought all this new infrastructure was the result of hard work from citizens of a fast paced developing nation.

With the high level education at the univesity level, the vast financial support invested by the government, how could it be anything but???
 

Hillbilly

Moderator
Jan 1, 2002
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I do believe I mentioned something about this a really long time ago.

I think what I said was that "it is impossible for the banks to be financing the building of the apartment towers in Santo Domingo, because there was not that much money available." And besides it is not possible to build so many towers, so many empty towers if you are paying 20% or 30% on your money....In three years of vacancies or really slow construction, and costs will have duplicated....

It just did not make sense to me, but I am not an economist or a construction engineer or a banker. I do know that people in the construction industry told me that the money from administrative corruption was pushing aside the money being laundered, so they must know a whole lot more that is out there in the public domain..

HB
 

waytogo

Moderator - North Coast Forum
Apr 3, 2009
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We will soon get a post from the "SPIN DOCTOR" saying ........NO, NOT HERE.........NEVER......
HOW COULD YOU SAY SUCH THINGS.........BLAH BLAH BLAH.......

B in Santiago
 

lisagauss

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Feb 16, 2011
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Yup, most drug money is going into construction, remember Plaza Joel in Santiago? Its still there, but I think another another name.
 

Criss Colon

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I really can't believe this important news didn't make "The Cut" to be in today's "DR1 News"??????????????
Oh well,I guess "Coco" and the "Yankees' visit are more interesting,to SOMEONE"!
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Randall Bell

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Feb 17, 2012
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Hi Guys,

Can someone please explain to me how building a mall contributes to washing money?

I mean let's say I make $1000 from a drug deal.
I then use that $1000 to build a mall.
the mall still needs to make a profit for me to have 'washed' my money does it not?
What if the mall is not a success then I haven't exactly washed my money, as much as just 'thrown it away'..... no?

what am I missing?
 

Manzana

Member
Jan 23, 2007
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Hi Guys,

Can someone please explain to me how building a mall contributes to washing money?

I mean let's say I make $1000 from a drug deal.
I then use that $1000 to build a mall.
the mall still needs to make a profit for me to have 'washed' my money does it not?
What if the mall is not a success then I haven't exactly washed my money, as much as just 'thrown it away'..... no?

what am I missing?
I may be missing something too but I think typically the idea when you are talking about operating businesses that have substantial real cash flow is you can continuously dump new cash into the balance sheet and it comes out as clean profit. As long as the business is operating and getting some real customers you can dump in cash so that even if it's really losing money, on paper it's a goldmine. In the case of a mall you might place businesses, have dummy renters, or make deal to bring in outside businesses at much higher paper rent than you are really charging. After all you literally got more money than you know what to do with so the point is not making a real profit, it's making a vaguely plausible paper profit that you flesh out with your formerly dirty money.
 

Manzana

Member
Jan 23, 2007
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So in your example the answer would be no, the mall doesn't really have to make a profit....it just has to seem like it plausibly might be making a profit so that money can be injected into it and emerge as clean profit. Say you buy your novia a fancy hair salon to manage. She hires some stylists and you post high prices but you let the chicas do all their friends at better prices. Your creative accountant claims you are doing three times the business you really are, so now you are not a shady character with no visible means of support, but a wealthy businessman. Cash businesses are best but not necessary if you have good accountants.
 

Manzana

Member
Jan 23, 2007
229
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Im sure there are much more sophisticated financial tricks connected with large construction projects themselves involving mortgages and other instruments but ongoing cash businesses would be the old fashioned way to do it.
 

Barnabe

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Dec 20, 2002
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Hi Guys,

Can someone please explain to me how building a mall contributes to washing money?

I mean let's say I make $1000 from a drug deal.
I then use that $1000 to build a mall.
the mall still needs to make a profit for me to have 'washed' my money does it not?
What if the mall is not a success then I haven't exactly washed my money, as much as just 'thrown it away'..... no?

what am I missing?
Money laundering in itself is not making a profit, it is injecting illegal profits into the formal economy, giving him the aspect of legitimate money. (This is the "classical" approach. In EU countries, the laundering definition is nowmuch wider due to AML european regulations)

Basically, if you transform drug cash money into a property, you have washed your money.

Apparently, drugs cartels have so much money available they prefer to store it through concrete buildings than with cash: cash is dangerous to store, you have to guard it, it can be stolen, it can also in some cases be eaten by insects..

Thus a cartel can use a building just like a "cash warehouse"..

Given the relatively low real estate prices in the DR, on the long term, this might come out with a profit.

Then you can have a second step: use this cash warehouse to launder more cash. Typical example is to open an hotel, or a cabana. This cabana, believe it or no, will be always full.. So you have first your cash money transformed in a legitimate property, and then you use this property to wash more cash.

It is so easy to launder money in this country. Small property developments are probably one of the easiest way to do that: buy the land, find a maestro, pay him, the workers, the ferreteria, everything in cash. Then sell and get paid with drafts. That's it.

A fairly "simple" way to counter this type of laundering is to set legal limits to cash transactions: prohibit cash transactions above some threshold, and enforce the law..

But I can imagine some poster's reaction on this:
"IN THE DR...??? NEVER..... YOU MUST BE DREAMIIINNNGGGG SON!!!!!!!!!!".

I would agree 100%...

Barnab?
 

mountainannie

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Dec 11, 2003
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elizabetheames.blogspot.com
El 2011 fue el a?o en que m?s coca?na se ocup? en Quisqueya, con un saldo de 6, 747. 7 kilos confiscados. Esa estad?stica aumenta con los 1,500 kilos de coca?na decomisados el pasado domingo 25 de marzo en Juan Dolio.

not to take the focus off of the laundering but just look at that number!

here is the link to that article
Narcotraficantes reactivan las rutas en la regi?n del Caribe - DiarioLibre.com

amazing!
really think that the only way out of this is to cultivate the Haitian Gold and roll it in great Dominican tobacco and sell it as Papa Doc cigarrillos.....

honestly.. that is really the only way to drive the cocaine and heroin out

roll those doobies
 

Expat13

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Jun 7, 2008
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Im sure there are much more sophisticated financial tricks connected with large construction projects themselves involving mortgages and other instruments but ongoing cash businesses would be the old fashioned way to do it.
Another question begs??? Those who are trying to launder the money eventually want it in their name to justify their rich lifestyle, No? This said, wouldnyt an easy solution be, whenever a business is sold one must show how they paid for the business or investment in the first place.
 

Robert

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Jan 2, 1999
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Another question begs??? Those who are trying to launder the money eventually want it in their name to justify their rich lifestyle, No? This said, wouldnyt an easy solution be, whenever a business is sold one must show how they paid for the business or investment in the first place.
Who's asking how they paid or built the business? Not the DR taxman.
 

pi2

Banned
Oct 12, 2011
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Another question begs??? Those who are trying to launder the money eventually want it in their name to justify their rich lifestyle, No? This said, wouldnyt an easy solution be, whenever a business is sold one must show how they paid for the business or investment in the first place.
Its simple really : A company builds a building for $100,000,000 and select the contractors who are paid by progress payments. The building must be real, legitimate etc.
The contractors build but there is a kickback of say 20% into ,consultants, swiss bank accounts , building private houses, land in offshore trust funds whatever.
The rate of proceeds for the original money is 20% plus there are ongoing rents etc.
Drug cartels find it difficult to accumulate 100,s of millions in banks. So if they are wise they settle for the 20%. Networks of companies are invoved and governments such as the US government too.
pi2
 

JMB773

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Nov 4, 2011
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Money laundering in itself is not making a profit, it is injecting illegal profits into the formal economy, giving him the aspect of legitimate money. (This is the "classical" approach. In EU countries, the laundering definition is nowmuch wider due to AML european regulations)

Basically, if you transform drug cash money into a property, you have washed your money.

Apparently, drugs cartels have so much money available they prefer to store it through concrete buildings than with cash: cash is dangerous to store, you have to guard it, it can be stolen, it can also in some cases be eaten by insects..

Thus a cartel can use a building just like a "cash warehouse"..

Given the relatively low real estate prices in the DR, on the long term, this might come out with a profit.

Then you can have a second step: use this cash warehouse to launder more cash. Typical example is to open an hotel, or a cabana. This cabana, believe it or no, will be always full.. So you have first your cash money transformed in a legitimate property, and then you use this property to wash more cash.

It is so easy to launder money in this country. Small property developments are probably one of the easiest way to do that: buy the land, find a maestro, pay him, the workers, the ferreteria, everything in cash. Then sell and get paid with drafts. That's it.

A fairly "simple" way to counter this type of laundering is to set legal limits to cash transactions: prohibit cash transactions above some threshold, and enforce the law..

But I can imagine some poster's reaction on this:
"IN THE DR...??? NEVER..... YOU MUST BE DREAMIIINNNGGGG SON!!!!!!!!!!".

I would agree 100%...

Barnab?
Good points but believe it or not the drug cartel STILL and will ALWAYS wash money right through the BANKS!! Very difficult to wash that kind of money through businesses. Banks play a major role in washing money, " OFF THE BOOKS" of course.

Example if you worked for the cartel and you were in charge of the money lets say around 800 million dollar, no place on the planet you can wash this kind of money, so you get in bed with presidents and VP's of banks.

If the world stop washing money a lot of people would feel it.