Banks and drugs money

According to the head of the UN Office on Drugs and Crime, drugs money worth billions of dollars kept the financial system afloat at the height of the global crisis.

It is alleged that the only liquid investment capital available to some banks on the brink of collapse last year was drugs money and that a majority of the $352 billion of drugs profits was absorbed into the economic system.

Inter-bank loans were funded by money originating from the drugs trade and other illegal activities and, according to Antonio Maria Costa, head of the UN Office on Drugs and Crime, there were signs that some banks were rescued by the use of these funds.

Costa has not named any of the banks involved on the grounds that it would be inappropriate to reveal such information as the role of the office is to address the problem and not apportion blame.

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