Luxury timepieces are one of the most effective mediums to move illicit funds around the globe and a tool to integrate those ill-gotten gains into the financial system. Transnational criminal networks, terrorists, narcotraffickers and corrupt politicians have used watches to launder money as a part of global illicit finance.
A million dollars weighs just over 22 lbs. I learned this during one of my first tours as a CIA Case Officer. Like any other morning, I mounted my Gary Fisher mountain bike and rode out the gate of our compound for a quick exercise ride in the hills surrounding the African capital where I was working. This activity was “in pattern,” should I have surveillance, they would note the departure, but it would not warrant further investigation. A trained eye might have seen that somethingwasdifferent, however. The dead weight of ten thousand $100 bills in my backpack made the bike top-heavy and awkward to ride.
The operation was simple and routine. After a long Surveillance Detection Route (SDR) through the hills and side streets of the third world capital, I worked my way to a predetermined ops site. The watch on my wrist would have (probably) been a Timex Ironman, my go toDigital Tool Watch (DTW)for exercise over the past two decades. I would have checked the time before moving into the site, confirming that I would hit the operational window. In espionage, timing is everything.
Right on time.I identified a couple in the alley. We established bona fides with a verbal parole -- a predetermined phrase and response. I then handed them the heavy backpack in exchange for a similar one and rode off in the other direction, the entire exchange lasting less than a minute. In tradecraft lingo it was a “BE” (Brief Encounter).
A standard CIA Case Officers EDC, read moreHERE
Except for the backpack stuffed with cash, it was a routine day for a case officer. Certainly not the stuff of Hollywood but instead a crucial operation for the global network of intelligence collection. Due to compartmentalization, I didn’t know who the individuals were that I handed the backpack to or why they needed the large sum of cash, though I have my suspicions. They had likely just arrived in the country and could not bring the cash in through customs without drawing scrutiny.
One takeaway from this operation is that money isheavy.It’s inconvenient, bulky and difficult to transport, not to mention having to explain it away if discovered. This is why many illicit actors, spies and criminal networks rely on expensive but innocuous luxury items to move funds across borders. Given the significantincrease in value of timepieces, watches are a favored currency when it comes to illicit activity. I easily could have handed off a single watch to transfer that same value to the couple that morning.
The value-to-weight ratio of a Rolex, Patek Philippe, Audemars Piguet or other premium brands is exceeded only by precious gems, making it easy to physically transport a watch across international borders.The vast, unregulated, and fragmented gray market makes converting timepieces into cash relatively easy. Unlike vehicles, gold, and diamonds, there is no oversight or registration for timepieces and a million dollar Patek can be worn on your wrist, easily breezing through customs.
Lebron James wearing a "Tiffany Blue" Patek Philippe Nautilus Ref. 5711, a watch that has sold for 100 times its original price at $5,350,000 at auction.
The international financial system is heavily regulated and monitored by law enforcement and intelligence services to identify illicit activity. Transactions over $10,000 are automatically flagged and international border law restricts the amount of cash one can bring in/out of a given country undeclared.
Source: ZeroHedge News
