VIENNA: The United Nations’ crime and drug watchdog has
indications that money made in illicit drug trade has been used to keep
banks afloat in the global financial crisis, its head was quoted as
saying on Sunday.
Vienna-based UNODC Executive Director Antonio Maria Costa said in an
interview released by Austrian weekly Profil that drug money often
became the only available capital when the crisis spiralled out of
control last year.
“In many instances, drug money is currently the only liquid investment
capital,” Costa was quoted as saying by Profil. “In the second half of
2008, liquidity was the banking system’s main problem and hence liquid
capital became an important factor.”
The United Nations Office on Drugs and Crime had found evidence that
“interbank loans were funded by money that originated from drug trade
and other illegal activities,” Costa was quoted as saying. There were
“signs that some banks were rescued in that way.”
Profil said Costa declined to identify countries or banks which may
have received drug money and gave no indication how much cash might be
involved. He only said Austria was not on top of his list, Profil said.
Is this why we must have a war on drugs? Does this war finance
other unseemly activities?