Wachovia to Pay $160 Million in Agreement With DOJ Over Laundered Drug Cartel Funds

March 18, 2010, 4:00 AM UTC

TAMPA, Fla.—Wachovia Bank will pay $160 million to resolve criminal charges its failure to establish an anti-money laundering program allowed Mexican drug cartels to launder $110 million, the bank and federal officials announced March 17 (United States v. Wachovia N.A.).

In a deferred-prosecution settlement and other documents filed in U.S. District Court for the Southern District of Florida, Charlotte-based Wachovia agreed to forfeit $110 million—the amount of laundered funds—as well as pay a $50 million fine to the U.S. Treasury, U.S. Attorney Jeffrey H. Sloman and other federal officials said in a written statement.

Wachovia’s “blatant disregard” for ...

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