Friday, July 02, 2010

Wells-Fargo Asset Wachovia Reportedly Helped Mexican Drug Smugglers Launder $378.4B in Narcotics Money in Violation of Bank Secrecy Act

In order for the illegal drug game to be profitable, all pieces of the distribution chain must be available and in play just as in a legal business. In any distribution system, there must be a financing mechanism to ensure there is a place to hold the business' income and profits. A bank is a critical piece in any distribution chain, even in the illegal drug game. If there is money to be made, the bankers want a piece of the action and there is a lot of money in the illegal drug game.

Therefore, it is no wonder that
Wachovia recently admitted its part handling $378.4 billion in illicit narcotics funds in violation of the Bank Secrecy Act in the mid 2000s.

This was no isolated incident. Wachovia, it turns out, had made a habit of helping move money for Mexican drug smugglers. Wells Fargo & Co., which bought Wachovia in 2008, has admitted in court that its unit failed to monitor and report suspected money laundering by narcotics traffickers...

Wachovia admitted it didn’t do enough to spot illicit funds in handling $378.4 billion for Mexican-currency-exchange houses from 2004 to 2007.

Source: Bloomberg

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