Wachovia part of probe into Latin drug money: report

CHICAGO (Reuters) - Wachovia Corp (WB.N: Quote, Profile, Research, Stock Buzz) is being investigated by federal prosecutors as part of a probe into alleged laundering of drug proceeds by Mexican and Colombian money-transfer companies, The Wall Street Journal reported on Saturday.

An official of Charlotte, North Carolina-based Wachovia, the country's fourth largest banking firm, said the company is cooperating with the investigation, the newspaper said.

The Journal did not identify the Wachovia official and it attributed its information about the investigation to "people familiar with the matter."

A Wachovia spokeswoman declined to say whether the company was being investigated.

"Wachovia does not comment on the status or existence of government investigations," she said, adding that Wachovia maintains a strong anti-laundering program.

Wachovia is one of several large banks being investigated for relationships with the money-transfer companies, the Journal said.

Regulators said on Friday that Wachovia has agreed to pay as much as $144 million to settle allegations it failed to help consumers who fell prey to schemes operated by telemarketers that maintained accounts at the bank.

Wachovia this month posted a surprise first-quarter loss as credit problems from mortgages and other debt soared.

(Reporting by Kyle Peterson; Editing by Bill Trott)