Wachovia Busted Laundering Drug Money

Bank Busted Laundering $420 Billion in Drug Money (in 2010)

Spends $42 Million Improving Compliance Program plus $160 Million Settlement; Profit = $419.898 Billion

George Carlin’s Solution starts at 1:33

Uploaded on Mar 19, 2010 by MidNightRider2001

US Government Lets Bank Off The Hook
Wachovia Bank reached a $160 million settlement with the Justice Department over allegations that a failure in bank controls enabled drug traffickers to launder drug money by transferring money from Mexican currency-exchange houses to the bank.

Under a deferred-prosecution agreement with federal prosecutors in Miami, Wachovia, which is owned by Wells Fargo & Co., “admitted failure to identify, detect, and report suspicious transactions in third-party payment processor accounts,” according to the Justice Department. Prosecutors said the bank processed $420 billion in transactions without using proper money-laundering detection.

In a statement, Wachovia said it “has made significant enhancements to its [anti-money laundering] and [Bank Secrecy Act] compliance program that have strengthened its ability to guard against unlawful use of its system by wrongdoers.” Wachovia has spent $42 million improving its compliance program, the bank said.


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