According to news reports, federal prosecutors are investigating whether Wachovia Bank has any criminal liability for its relationship with funds transfers to a currency exchange business, Casa de Cambio, in Puebla, Mexico.
Mexican authorities were involved in a search and seizure in Puebla, and are apparently cooperating with federal authorities. The US government has already seized $11 million in Wachovia bank accounts in Miami and London. Florida attorney Frank Rubino had filed suit in 2007 for the return of the funds.
According to Forbes, "Last week, the Mexican government, working in cooperation with U.S. law enforcement, raided Casa de Cambio Puebla's offices and moved to put the exchange house out of business. Mexican authorities detained a branch manager, Pedro Alatorre, and a compliance officer, Amador Vazquez, saying they were under investigation for drug-money laundering. Federal investigators in Mexico released information this week connecting Alatorre to an account at Harris Bank holding $2.7 million and also described Alatorre as a financial operator for the Pacific Cartel, headed by notorious fugitive Joaquín "el Chapo" Guzmán Loera. The Mexican raid explains why the U.S. government froze $11 million of Casa de Cambio Puebla's assets in 23 different accounts at Wachovia branches in Miami and London in May. "
"The feds are targeting American banks connected to Mexican exchange houses used to launder drug proceeds. In September, Union Bank of California, a unit of San Francisco-based UnionBanCal, agreed to pay $31.6 million in fines and penalties to settle drug-money laundering issues stemming from its business with Mexico-based Ribadeo Casa de Cambio. "
Link to Wall Street Journal article.
