Mar.18, 2010

MIAMI — Federal authorities in Miami have filed criminal charges against Wachovia Bank, alleging it failed to block Mexican currency-exchange houses from laundering $110 million in drug proceeds through the bank, officials said Wednesday.

Wachovia Bank, a subsidiary of Wells Fargo & Co., will avoid criminal prosecution by agreeing to pay a $50 million fine and forfeit the $110 million, officials said.

The bank must also implement stronger anti-money laundering systems.

Wachovia, charged with violating the U.S. Bank Secrecy Act, got out of the foreign money-transfer business two years ago. Federal authorities long have targeted the currency exchange houses as conduits for laundering drug profits.