U.S. Justice Department Talks With Wachovia About Deferred-Prosecution
Wachovia Corp. is one of several U.S. banks under federal investigation as part of a probe of alleged drug-money laundering by Mexican and Colombian money- transfer companies, the Wall Street Journal reported, citing people familiar with the probe.
The bank is talking with the U.S. Justice Department about a deferred-prosecution agreement that would require federal oversight of the Charlotte, North Carolina-based company's compliance system, the Journal said.
``Wachovia is not currently nor has it in the past engaged in those discussions,'' Wachovia spokeswoman Christy Phillips- Brown told Bloomberg News in a telephone interview. ``Wachovia doesn't comment on the status or existence of investigations. The bank is committed to a strong-anti-money-laundering program.''
The remittance industry transmits more than $50 billion from the U.S. to Latin America annually, the Journal said. Most of the money involves wages being sent to relatives, although drug traffickers may use the system to move proceeds from their U.S. narcotics sales.