Thursday, April 07, 2011

Cocaine smugglers laundered billions through Wachovia bank

The fees the bank earned handling the $300+ billion exceeds the fines and forfeitures, hence the lesson learned: 'Crime pays'.

The flow of cash through the bank began in 2004 -- coinciding with the rise of Mexico's menacing drug gangs and the increased violence on the U.S.-Mexico border. Wachovia failed to apply the proper anti-laundering strictures to the transfer of $378.4bn — a sum equivalent to one-third of Mexico's gross national product. The fine was only $50 million.

IMO: Wachovia is a well-known US bank. I think "some people" made a profit and nobody actually seems to have been punished. It certainly sounds like corruption rather than diplomacy.

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