Drug Money May Have Kept Banks Afloat During Economic Crisis
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. 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. In the second half of 2008, liquidity was the banking system’s main problem and 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.
Tags: drug trade, interbank loans, Profil, United Nations, UNODC
