Friday, October 10, 2008

Wachovia Is Under Scrutiny in Money-Laundering Probe, WSJ Says

is one of several
U.S. Banks under federal investigation as portion of a investigation of
alleged drug-money laundering by Mexican and Colombian money-
transfer companies, the Wall Street Diary reported, citing
people familiar with the probe.

The depository financial institution is talking with the U.S. Justice Department about a
deferred-prosecution understanding that would necessitate federal
oversight of the Charlotte, North Carolina-based company's
compliance system, the Diary said.

''Wachovia is not currently nor have it in the past engaged
in those discussions,'' Wachovia spokeswoman told Bloomberg News in a telephone set interview. ''Wachovia
doesn't notice on the position or being of investigations. The
bank is committed to a strong-anti-money-laundering program.''

The remittal industry transmits more than $50 billion from
the U.S. to Latin United States annually, the Diary said. Most of the
money affects reward being sent to relatives, although drug
traffickers may utilize the system to travel return from their U.S.
narcotics sales.

A Justice Department spokesman didn't immediately go back a
call from Bloomberg News seeking comment.

To reach the newsman on this story:
at .

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