TWO MEXICAN BANKS PLEAD GUILTY

LOS ANGELES, March 31 (UPI) - Two of Mexico's largest financial
institutions have pleaded guilty in Los Angeles to criminal charges of
laundering drug money and agreed to forfeit $13.6 million.

The U.S. Attorney's Office says the pleas by Bancomer, S.A., and Banca
Serfin, S.A., come in connection with ``Operation Casablanca,'' the
largest money laundering case in U.S. history.

Bancomer and Banca Serfin each pleaded guilty to one count of money
laundering and agreed to forfeit $9.4 million and $4.2 million
respectively, and pay $500,000 criminal fines.

A third Mexican bank, Confia, S.A., which has been bought by Citicorp,
agreed to forfeit $12.2 million. Criminal charges against Confia were
dismissed.

U.S. Attorney Alejandro Mayorkas called Tuesday's guilty pleas a
``significant milestone in our efforts to combat the laundering of
narcotics proceeds through financial institutions.''

Mayorkas says, ``By pleading guilty to money laundering, the banks
have acknowledged full responsibility for the fact that their
employees knowingly laundered drug money while acting within the
course and scope of their employment, and that these employees acted
with an intent to benefit the banks.''

Prosecutors say the bankers were laundering what they believed were
drug proceeds from the Colombia-based Cali drug cartel, though the
funds were actually part of a sting operation.

Eleven money brokers and other employees of Mexican banks have pleaded
guilty to criminal charges, and six others are still awaiting trial in
the United States. The Mexican government has pledged to prosecute
five people arrested in Mexico, and 17 others are fugitives.