I recently talked to John Cassara, a former US intelligence officer and Treasury Special Agent, about a popular series of morning seminars he hosts. The “breakfast” seminars cover financial crimes topics of import to federal agencies and law enforcement.
Recent seminar topics have included trade-based money laundering, underground financial systems, the growing threat of mobile payments and social media analytics. On May 13, Cassara and guests will discuss the misuse of the international gold trade to launder money and finance terror. Learn more below from my discussion with Cassara.
What was the idea behind the “breakfast seminars?”
John Cassara: As a former federal employee, I know how difficult it is to take time and travel to a conference or for that matter attend a full-day seminar. And travel and training funds are scarce right now. So the idea was to host informative sessions in the D.C. area that people could easily attend and still be back to work before lunch.
So why did you choose gold as the topic for May’s seminar?
Cassara: Over the last half century, law enforcement agencies have seen how the misuse of the international gold trade is used time and time again to launder staggering amounts of money or to fraudulently transfer value – primarily via over or under invoicing. In fact, some of the largest money laundering cases in history have involved gold.
For example, in the early 1990’s the first large money laundering case I worked was Operation Polar Cap. It was an international conspiracy. I was based in the US Embassy in Rome at the time and investigated the Italian and Middle Eastern connections. More than $1 billion in illicit narcotics sales were laundered via the international gold trade. A variety of schemes were used. I was fascinated by what I found and have been interested in the gold and money laundering connection ever since.
There are still cases involving gold?
Cassara: Oh yes! That’s why it is so frustrating. We’ve done little to stop the fraud and laundering. Law enforcement hasn’t learned the hard lessons.
During the seminar, we’ll talk specifically about why gold is still one of the top methodologies used by professional money launderers. And we will explore some of the techniques they use.
Can you give me an example?
Cassara: Via trade-based value transfer, virtually any commodity can be used to launder money. Invoice fraud is generally involved. And if a lot of money is involved it makes sense for the launderers to use something with high intrinsic value – like gold. Depending on the situation, they can easily alter the form of gold. Another unique characteristic of gold is that it is both a commodity and a defacto bearer instrument. There is nothing else like it out there!
However, you asked for a specific example. Just last week there were reports about a case in India where a smuggler from Singapore swallowed 12 gold “biscuits” each weighing over 33 grams!
Why would somebody do that?
Cassara: Besides trying to avoid taxes and import duties, there are many cultural reasons why gold is so popular in places like India, China and Latin America.
I understand you are going to have some guest speakers as well?
Cassara: After I give the overview presentation, Senior Special Agent Hector Colon of Homeland Security Investigations (HSI) will discuss his observations and current trends. Hector heads up the HSI’s Trade Transparency Unit initiative.
In addition, John Stultz, a SAS Senior Solutions Architect and an excellent presenter, will demonstrate how SAS’ analytic solutions could help law enforcement better target criminal organizations involved with the misuse of the gold trade.
Sounds like another very interesting seminar. The event is open to all federal employees and contractors. Register early to guarantee your seat at the table.
