Wachovia Bank N.A. will pay $160 million to settle federal charges that it enabled Mexican exchange houses to launder drug money.

Drug dealers moved funds between the United States and Mexico.  The houses facilitated money transfers between the two countries.

The Charlotte-based bank was acquired by Wells Fargo & Co. of San Francisco and stopped dealing with the exchanges.  A Wachovia press release states Wells Fargo knew about a federal investigation before buying Wachovia in late 2008.  Wells Fargo established reserves to pay the settlement.

Money laundering statutes have since been taken into higher action with the Wachovia compliance program.

Wachovia has a 15.14 percent market share in the Triad as of June 30 with $5.8 billion in deposits, second only to BB&T, with 40.61 percent of the market.