CUSTOMS SERVICE EYES MONEY SMUGGLING

WASHINGTON (AP) -- The U.S. Customs Service has seized more than $11.4
million in cash that people tried to smuggle out of the country, including
by stuffing it in bicycle tires, cereal boxes and concealed car
compartments.

At least one person attempted to sneak cash out of the country by tightly
rolling $100 bills, inserting them into condoms and swallowing them.

The seized cash, the result of a six-week nationwide effort called
``Operation Powerplay,'' was part of a crackdown on money laundering. The
operation led to 194 arrests, including people wanted for armed robbery and
drug possession, Customs said as it announced the action Thursday.

The ``vast majority of the seized money related to the sale of illegal
drugs,'' Customs Commissioner Raymond Kelly told The Associated Press in an
interview.

More than half of the cash seized was destined for Mexico, Israel, Colombia,
the Dominican Republic, Guatemala and Jamaica, Customs said.

Most money laundering involves illicit profits from drug trafficking,
prostitution or other criminal activities, which are moved through a series
of bank or brokerage accounts to make them appear to be proceeds of
legitimate business activity.

Each day, criminal groups generate huge sums of cash from illegal activities
but they face difficulty depositing large amounts into U.S. banks.

As a result, criminals often smuggle cash to foreign locations where it can
be more easily deposited into banks. Then it can be instantly wired
anywhere, Customs officials said.

Operation Powerplay was ``an integral part of our anti-money laundering
strategy,'' Kelly said. ``We know that bulk-cash shipments are still the way
most drug money leaves the country.''

There's no limit on the amount of money that a person can legally transport
when entering or leaving the United States.

But federal law requires amounts of more than $10,000 (in cash or in such
things as travelers checks, cashiers checks and securities that can be
easily converted to cash) must be reported to Customs. Those who don't, can
have their currency confiscated.

Between 1996 and 1999, Customs has seized $284 million in unreported
currency that people attempted to smuggled out of the United States.

As a result of the leads generated by Operation Powerplay, Customs has
initiated 173 investigations.

To detect hidden currency, Customs officers used a variety of methods,
including routine searches, X-ray machines to scan large pieces of cargo and
containers, and specially-trained dogs to sniff out cash.

During the operation, Customs officers -- aided by state and local law
enforcement -- intensified outbound detection efforts between July 10 and
Aug. 19 at airports, seaports, land borders, mail facilities and courier
hubs.

Some seizures resulting from the operation:

- -- $528,908 from packages at FedEx's express courier hub in Memphis.

- -- $231,340 concealed in bicycle tires at Miami International Airport.

- -- $21,592 concealed within a Honey Nut Cheerios cereal box located in trunk
of a vehicle searched at Hidalgo, Texas.

- -- $504,712 concealed in a secret compartment under the rear seat of a 1994
Isuzu Trooper.

- -- $65,221, some hidden on airline passenger at JFK Airport; 46 pellets
containing currency was swallowed.

- -- $83,546 concealed in a stereo speaker of an airline passenger at Miami
International Airport.