Magazine article American Banker

Citi Affiliate Settles AML Violations Probe Tied to Mexico-Bound Remittances

Magazine article American Banker

Citi Affiliate Settles AML Violations Probe Tied to Mexico-Bound Remittances

Article excerpt

Byline: Lalita Clozel

Banamex USA, an arm of Citigroup's Mexican subsidiary, agreed Monday to pay $97.4 million to the Department of Justice over widespread anti-money-laundering abuses tied to Mexico-bound remittances. As a result of a prior settlement with the Federal Deposit Insurance Corp. over similar issues, Citi announced in 2015 that it would shut down the bank.

In the settlement, Banamex USA admitted to have filed only nine suspicious activity reports in connection with more than 18,000 suspicious transactions that set off its internal monitoring system. In exchange for the forfeiture and promises to cooperate in further AML investigations, the U.S. government agreed not to prosecute.

These alerts were tied to the more than 30 million remittances towards Mexico -- worth $8.8 billion -- the bank processed between 2007 and 2012. BUSA conducted less than 10 investigations in relation to the suspicious remittances, the settlement agreement said.

In addition, the bank's transaction monitoring system was "limited and manual," the Justice Department found, flagging down only two types of scenarios of suspicious activity. The process required subsequent AML reports to be reviewed directly by only two employees assigned to the task.

The settlement with Justice follows several enforcement actions the bank has faced from regulators in previous years over its AML failings. In 2015, BUSA was fined a combined $140 million by the Federal Deposit Insurance Corporation and California Department of Business Oversight. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.