News

OCC’s Failure to Cite Wachovia for AML Violations Angers Law Enforcement, Spurs Change at Agency

By Brian Monroe

Federal bank examiners failed for at least four years to identify widespread signs of money laundering at Wachovia Bank, frustrating officials who helped levy a $160 million penalty against the institution last week. Wells Fargo & Co., the parent company of Wachovia Bank since December 2008, agreed to a March 17 deferred prosecution agreement for not sufficiently scrutinizing $420 billion in transactions involving Mexican foreign currency exchange businesses suspected of drug cartel ties. The penalty is the largest ever levied for anti-money laundering (AML) violations. The U.S. Treasury Department's Office of the Comptroller of the Currency (OCC), which sought $50...

TO READ THE FULL STORY