Pubdate: Wed, 31 Mar 1999 Source: United Press International Copyright: 1999 United Press International 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. - --- MAP posted-by: Patrick Henry