Organized crime and their use of the U.S. financial system periodically rears its head as an issue. The Bank of New York was ensnarled in a rough patch of media coverage about its alleged links to Russian organized crime figures a decade or so ago. American Express Bank International paid fines after admitting it failed to deal adequately with drug money. And who can forget the BCCI fiasco.

Over the years, regulators have passed many laws aimed at preventing rogue organizations from laundering money through U.S. banks. But the problem persists, according to Bloomberg Markets, which takes a look at the drug wars in Mexico and U.S. banks.

Have some banks turned a blind eye to drug money in search of fat fees? It sure seems like that to the magazine, which says: "No bank has been more closely connected with Mexican money laundering than Wachovia." Which of course is now owned by Wells Fargo (WFC).

Wachovia's former head of an anti-money-laundering unit at the bank, Martin Woods, tells the publication he quit the bank after executives ignored his documentation that drug dealers were funneling money through Wachovia's branch network. In March, after a 22-month investigation, the Justice Department charged Wachovia with violating the Bank Secrecy Act by "failing to run an effective anti-money-laundering program." Wells Fargo paid $160 million in fines and penalties. It says it has redoubled its anti-money laundering efforts.

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