Wachovia To Pay 160 Million In Drug Laundering Probe

03.18.10 | FL News Team

Wachovia Bank will pay 160-million dollars in a settlement stemming from allegations it laundered Mexican drug money. The fine stems from a probe that centered on the alleged role of a Wachovia unit in processing illegal money transfers for Mexican exchange houses along the U.S.-Mexican border. The exchange houses are businesses that allow immigrants in the U.S. to send money back to relatives in Latin America. U.S. Attorney Jeffrey Sloman pointed to, quote, "Wachovia's blatant disregard" for U.S. banking laws as the reason for the fine.

 According to Sloman, Wachovia laundered at least 110-million dollars in drug proceeds. The bank, which is now a unit of Wells Fargo, will pay an additional 50-million dollars to the U.S. Treasury Department. The investigation of Wachovia began about three years ago and was launched by a federal prosecutor in Miami.