How Did Gaddafi Bypass US Anti-Money Laundering Rules To Bank With Goldman And JPMorgan?

Tyler Durden's picture

One of the most critical questions that has to be asked in light of yesterday's revelation that among the banks providing banking and asset amangement services for Libya were Goldman Sachs, JP Morgan and Citigroup, is just how did Libya get an exemption for anti-money laundering provisions both in Europe and the US. Oddly enough, this future mainstream debate arises not in the US, where any form of critical thinking appears to be immediately curbed by SEC Rule 201 (for all those calling for a hike in the SEC's budget, we suggest the following contrarian thought experiment: let's cut its budget to zero and see how long before anyone notices) , but out of the UK, where a reader writes in to the FT (oddly enough, partially owned by the Libyan Investment Authority) with the following very simple question: "It seems to me entirely implausible that Col Gaddafi could have earned
billions of dollars through legal means. And yet if the AML procedures,
to which we are all subjected, have not been applied rigorously to the
likes of Col Gaddafi and his family, one is forced to ask what purpose
they really serve." Or what purpose any regulation serves in general when fraud results in surging stock prices, and companies that adhere to the rules are promptly wiped out in this bizarro capitalist world.

From the FT:

Sir, I read with interest the news that the UK government is freezing billions of dollars in assets belonging to Muammer Gaddafi and his family. I would also be intrigued to know whether the banks and other financial institutions handling these assets have applied the same anti-money laundering (AML) procedures to these assets as are applied to every other “normal” banking client in the UK.

I am less interested in whether Col Gaddafi and his family were able to supply passport copies and utility bills but more interested in what evidence they were able to present as to the source of the funds.

It seems to me entirely implausible that Col Gaddafi could have earned billions of dollars through legal means. And yet if the AML procedures, to which we are all subjected, have not been applied rigorously to the likes of Col Gaddafi and his family, one is forced to ask what purpose they really serve.

Charles L.M. Horner,

Bangkok, Thailand

h/t Dylan Grice and Lizzie

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JW n FL's picture



if it wasnt for those pesky planes they bought... they would have gotten away with it.

ms1408's picture

Regulations are for the competitors of the too-bigs only. Why do you think they lobbied to give the Fed unlimited regulatory powers. Try to start a hedge fund and do what these JPM gets away with and you'll be locked up in no time.

Careless Whisper's picture

WellsFargo/Wachovia didn't notice the $378 Billion being laundered. But if you operate the corner bodega and do wire transfers without a license you're getting prison time;


Zero Govt's picture

Spot On. Regulation is nothing but a cunts game and anyone thinks legislation, regulation or any rules for that matter is anything but control leavers for The Parasite Club is too bloody naive for words

Martin Armstrong has also said New York is a racket, that the NY Fed and SEC have been shutting down out-of-town operations that provide too much (too good) competition to the NY/WS clique for decades

Regards banks and dodgy regimes how does any Western arms dealer repatriate monies through the Western banking system! Are their staff guilty of ill gotten gains when paid their wages? 


AldoHux_IV's picture

I'm sure the federal reserve helped in this manner-- it's why we can't give the villains more power.  They only aid in destroying anything decent in this world.

Crumbles's picture

Obviously, the Colonel is TBTF ...

MiddleMeThis's picture

Duh, the rules don't apply to the elite, in any country.  Nuff said.

flacon's picture

Laws are meant for "We the People" not for our kings, queens, politicians, presidents, prime ministers, and wanker-bankers. OUr masters need space to do their "tinkering" with our fantastic plastic economy and our trashy cash.

trav7777's picture


JFC, they freed the Lockerbie bomber for oil, Saddam used oil vouchers for a decade to circumvent sanctions

karzai_luver's picture

nah, that dude is dead and buried of cancer, right???




what a fuking joke of a charade that whole weasle assed move was.


buzzsaw99's picture

Money laundering like Sack and Frost do almost every day?

sabra1's picture

laundering money or printing money, what's the dif?

Dr. Porkchop's picture



It's all dirty money in the end.

karzai_luver's picture

Rules...RULES....for the little peeps only.


This shite is national security, bithcez!


newworldorder's picture

Printed money carries a "vig" the minute it leaves the printing room, FED.

Laundry money has to first be taken to a bank in order for the "vig" to start.

You guys need to know these things.

Shameful's picture

Uh, the laws only apply to the little people.  I thought everyone knew that...

carbonmutant's picture

 LOL... I missed your post.

GottaBKiddn's picture

The regulations are window dressing for racketeering.

newworldorder's picture

No, its not racketeering; - Its called BANKING.

AZSovreign's picture

Ron Paul had is chance to blow it WIDE open today and he did.... NOTHING!!


Ron Paul is controlled opposition!

DB Cooper's picture

Controlled disinformation - he gets his chance and asks what is the definition of money?  wtf - he's a fraud.

Translational Lift's picture

TBTE is the answer.......Too Big To Enforce.....I wonder how many people were paid-off to look the other way on this (and other similar) cases.

Thorny Xi's picture

Islamabad—The United States, Britain and France have sent several hundred “defence advisors” to train and support the anti-Gadhafi forces in oil-rich Eastern Libya where “rebels armed groups” have apparently taken over.

According to an exclusive report confirmed by a Libyan diplomat in the region “the three Western states have landed their “special forces troops in Cyrinacia and are now setting up their bases and training centres” to reinforce the rebel forces who are resisting pro-Qaddafi forces in several adjoining areas.

A Libyan official who requested not to be identified said that the U.S. and British military gurus were sent on February 23 and 24 night through American and French warships and small naval boats off Libyan ports of Benghazi and Tobruk.


slewie the pi-rat's picture

this is a winner, Xi! 

9-10 days ago, these agents were "sent in", or so say sources from...uh,...Pakistan?  these are not rumors!  this is TRUE, b/c it has been CONFIRMED by a libyan diplomat who is in some "region" and (?) a libyan "official" also? 

those seemingly successful "rebel armed troops" who have "apparently taken over" in E. libya, may be in for some snuff-film surpises, eh?  plus, is it only slewie, or do others also see that James Coburn thingy going on with the mo-gadfly?  if i'm even luke-warm w/ a lucky guess, here, bilary will look fabulous as she successfully negotiates the agents back to the safety of their interlocking mossad spy networks and international banksters who, it appears now, may be using nations as "agents". can this be t-r-u-e???

how freaking crazy have i gotten here, sports fanZ???  here's a woman so formidable, she admitted to being a texan:

YouTube - Janis Joplin - Piece of My Heart [live Woodstock]



JW n FL's picture

Know Your Client!!!!!

which really is..

which really is..

which really is..


someone will go free and un-charged of $30 Billion Dollars worth of Money Laundering!


God Bless the Bankers!

ft65's picture

Quoting JW n FL / GLP ^TrInIty^ >>Know Your Client!!!!!

Amen ^TrInIty^ ... I mean JW

JW n FL's picture

It is to, too bad that you have lost your ability to advertise for yourself after everyone of my posts.


sgt_doom's picture


Of course, everyone realizes that the reason the prime money laundering global banksters created the Wolfsberg Group, to develop all those AML (anti-money laundering regs for the UN, etc., Egmont Group, IMF, etc., etc.) was to control the global money laundering, not to alter or stop it in any way.

As we all know, almost all of those banks have before and since then paid penalties for money laundering, but nobody ever, ever goes to jail.

walküre's picture

40+ years he was a good client.

Now the US government is bankrupt.

The Nazis confiscated the wealth of all jews to finance their war effort.

Same strategy, different approach

Shameful's picture

Call me old fashioned but why are they keeping all that loot in banks?  Now if I was a power mad dictator, I got to think I would commission a massive vault to house my loot (aka gold) in an isolated area.  Then have the builders killed, and then the killers killed, then maybe those killers killed for good measure.  But I suppose maybe they have and it's the secret emergency stash.  But this flying stuff out at the last minute and getting accounts frozen says to me these guys were not thinking long term.  How unprofessional, I bet our oligarchs are way smarter :)

velobabe's picture

exactly, money the ultimate S T U F F †

where does a king hide his loot? just start being naked, is my solution. you got to be comfortable just being nude. solution solved. plus, shameful (not me), if i had police or national guard pointing rifles @ me, i would ask them if i could take my clothes off before they killed me. i think that would be a great way to go. they shot her dead, naked.

Joeman34's picture

Virtually every one of your posts is about sex.  Are you frustrated?

Confused's picture

It seems to me that this whole business with accounts being frozen, and escaping by plane, just shows how interconnected the crooks really are. 


But you do bring up an interesting point. If you are in the game, why trust someone to hold your wealth for you? 

Antipodeus's picture

Trade isn't the only thing which has been 'globalised'.


JW n FL's picture

Go-Daffy was a savings account that the Goobermint needed to bust open..


walküre's picture

DBO is your friend.

redpill's picture

If you have enough money, they rules don't apply.  You couldn't have asked for a more stark example than the last 3 years in global finance.

velobabe's picture

tylers, guess what? you have gotten over 1500, fifteen hundred new twitting people following your twitter page. this is after i announced for everyone to become a follower of you guys on the tweeter. so are we going to brake/break 20,000 followers by weeks' end? i speculate, Y E S  w e  C A N. you are the real deal and the numbers show this. you will probably take over as number one choice for all things considered

NEWs, bitchez†

Azannoth's picture

If you play 'by the rules' you're guaranteed do loose, it's a simple as that but so few people seem to understand it

velobabe's picture

man, that is absolutely right. i can attest to that. i have played by the rules and got so gang raped, my whole life. but it is reflection and direct experience that is golden.

zaknick's picture


"money laundering" is for funding the redneck drug warriors

google " policing for profit" "the drug war's hidden economic agenda" by prof eva nielsen

the dea, fbi, atf etc all are "self-financing police agencies"...

Iam Rich's picture

Simple.  GS and Citi simply don't give a shat about their country.  "They" have no moral or ethical compass.  They must be broken.