NEW YORK (AP) _ Two former Bank of Boston employees - a branch manager and a teller - are under federal investigation for allegedly helping Boston's leading criminal syndicate launder money, The New York Times reported today.

According to the Times, the two worked at the bank's branch in the predominantly Italian-American North End of the city - just three blocks from the headquarters of the Angiulo family.

The two retired employees, identified as manager Gloria Cushing, 59, and teller Howard Matheson, 64, reportedly accepted small cash payments to put two Angiulo-owned companies on a list which exempted their cash transactions from being reported to the Internal Revenue Service, the Times said.

This would have allowed the family to move its funds from illicit operations into legitimate business, where it could not be traced. A 1980 federal law requires banks to report all cash transactions above $10,000, although certain retail business which normally deal in large amounts of cash can be exempted.

The investigation is being conducted by the New England Organized Crime Strike Force, the Times said. Last week, Bank of s his wife would not comment on the investigation.