Citigroup settles claims over possible money laundering
Citigroup has agreed to pay nearly $100 million to federal authorities to settle claims that a lack of internal controls and negligence in the bank's Mexican subsidiary may have allowed customers to commit money laundering.
The Justice Department announced Monday that Citi's Banamex division will pay $97.44 million for violations of the Bank Secrecy Act. Citi did not admit any fault.
Federal authorities alleged that Banamex officials allowed more than 30 million remittances from the U.S. to Mexico worth roughly $8.8 billion. While Banamex's internal controls alerted the bank to 18,000 potentially suspicious transactions, Banamex investigated fewer than 10 of them.
Citi, which previously announced it was winding down Banamex's U.S. operations, entered what's known as a "non-prosecution agreement" with authorities.