Hound-Dogs, March 2004
(Same title but not same article as in Dissent 2003)
This is a story about a massive money-laundering operation run by the world‘s biggest banks. It hides behind the “eyes-glazing over” technicalities of the international financial system. But it could be one of the biggest illicit money-moving operations anyone has ever seen. And it‘s allowed to exist by the financial regulators who answer to Western governments.
In these days of global markets, individuals and companies may be buying stocks, bonds or derivatives from a seller who is Clearstreamhalfway across the world. Clearstream, based in Luxembourg, is one of two international clearinghouses that keep track of the “paperwork” for the transactions.
The world‘s biggest banks and multinational corporations have set up a shadowy system to secretly move trillions of dollars”a system that can be exploited by tax evaders, drug runners and even terrorists.
In the tax haven of Luxembourg, a little-known outfit called Clearstream handles billions of dollars a year in stock and bond transfers for banks, investment companies and multinational corporations. But a former top official of this “clearinghouse” says Clearstream operates a secret bookkeeping system that allows its clients to hide the money that moves through their accounts.
NEW YORK–A controversial European book that might help authorities track terrorist funding sources remains unpublished and relatively unknown in the United States.
”Entitled Revelation$,it exposes a secret banking system that might be used by terrorists. At the center is a clearinghouse in Luxembourg called Clearstream, which transfers money for international banks and major companies.
Written by a former high-ranking Clearstream official and a French journalist, its publication last February by Les Arenes in Paris triggered the firing of Clearstream’s top officials, a judicial inquiry in Luxembourg, and invitations to the authors to address members of the European Parliament and the French parliamentary commission on financial crime and money-laundering.