Wachovia Bank Guilty of Mexican Drug Money Laundering

“For a root of all the evils is the love of money, which certain longing for did go astray from the faith, and themselves did pierce through with many sorrows.” 1 Timothy 6:10 (YLT)

Wachovia Bank officials in Miami plead guilty to federal drug money laundering charges in Miami. As part of their agreement, the bank will forfeit $110,000,000 ($110 Million) and be fined $50,000,000 ($50 Million).

Federal prosecutors with the U.S. Attorney General’s Office, and Drug Enforcement Administration officials found detailed evidence supporting criminal charges against Wachovia – a division of Wells Fargo & Company – and agreed not to prosecute bank officials if the bank would agree to the forfeiture and penalty.

According to the terms of the agreement, the bank must also begin to use stronger anti-money laundering systems.

Federal authorities said Wachovia Bank purposely failed to block Mexican currency exchange houses from channeling over $110,000,000 ($110 Million) in profits from international trade in illicit narcotics through Wachovia Bank.

Mexican currency exchange houses, called casas de cambio – literally “exchange houses” in Spanish – were established to facilitate currency exchanges from tourists, visitors to Mexico and international businesses, but in recent years have been targeted as channels for profits from the illicit cocaine and drug cartels in Mexico and Colombia, also called narco-traffickers.

In a related case, federal prosecutors have also charged Casa de Cambio Puebla and four defendants with conspiracy to smuggle several thousands of kilos of cocaine in the United States, and of using that business as a conduit to launder the narco-profits.

U.S. District Judge Donald Graham issued a protection order freezing about $27,000,000 ($27 Million) in assets that prosecutors plan to request as forfeiture in the case.