Wachovia, now a subsidiary of Wells Fargo & Co., has agreed to pay federal authorities $160 million to resolve allegation that the bank failed to maintain proper anti-money-laundering controls, thereby allowing billions of dollars of drug proceeds to pass through the bank between 2003 and 2008. According to federal officials, the transfers between the bank and Mexican currency exchange houses, commonly known as “casas de cambio,” allowed drug cartels to launder money and purchase boats and airplanes with drugs proceeds. Wachovia entered into a deferred prosecution agreement with the United States Department of Justice that requires Wachovia to pay a fine of $160 million within five days and to implement controls that fully comply with the Bank Secrecy Act. The $160 million fine is comprised of $110 million in forfeited proceeds from the various transactions and a $50 million fine to the U.S. Treasury.
A copy of the deferred prosecution agreement can be found here.
