CitiGroup & U.S. Dept. of Justice have settled Criminal Investigation at Banamex USA unit


Citigroup, Inc. (NYSE: C) and the U.S. Department of Justice have announced the settlement of a criminal investigation regard violations of anti-money laundering rules and the Bank Secrecy Act at the bank’s Banamex USA unit.  The settlement has a non-prosecution agreement and forfeitures by Citigroup of $97 million.  The bank claims that it has already reserved the quantity for the expense. 

Banamex USA had admitted to its failure to maintain an effective anti-money laundering program.  From 2010 – 2012 Banamex USA conducted less than 10 investigations on over 18,000 alerts produced by its monitoring system for almost $142 million in potentially suspicious transactions., the U.S. Justice Department said. 

The agreement comes after a 2015 settlement by Citigroup for $140 million with the California Department of Business Oversight and Federal Deposit Insurance Corp ensued as evidence of Bank Secrecy Act violations emerged. 

Banamex USA expects to cease all banking operations by June 30th, Citigroup said in a statement Monday.  

Leave a Comment