Skip to content


Harry Cassin
Publisher and Editor

Andy Spalding
Senior Editor

Jessica Tillipman
Senior Editor

Bill Steinman
Senior Editor

Richard L. Cassin
Editor at Large

Elizabeth K. Spahn
Editor Emeritus

Cody Worthington
Contributing Editor

Julie DiMauro
Contributing Editor

Thomas Fox
Contributing Editor

Marc Alain Bohn
Contributing Editor

Bill Waite
Contributing Editor

Shruti J. Shah
Contributing Editor

Russell A. Stamets
Contributing Editor

Richard Bistrong
Contributing Editor

Eric Carlson
Contributing Editor

Citigroup receives subpoenas for possible Bank Secrecy Act, AML violations

Citigroup and its Mexican affiliate, Banamex, disclosed on Monday the receipt of grand jury subpoenas concerning the bank’s compliance with the Bank Secrecy Act and federal anti-money laundering requirements.

Citigroup said the bank and Banamex received subpoenas from the U.S. Attorney’s Office for the District of Massachusetts, and Banamex received a subpoena from the Federal Deposit Insurance Corporation, Reuters reported.

Citigroup said it is cooperating fully with these inquiries.

On Friday, Citigroup lowered its 2013 earnings by $235 million and announced it had discovered fraud committed by Mexican oil services company Oceanografia which provided phony collateral for short-term loans.

Citigroup said Oceanografia used falsified invoices as collateral for $585 million in loans from Banamex, only $185 million of which it could verify.

Mexico’s attorney general on Friday said that the government had seized Oceanografia’s assets to protect creditors.

The U.S. Securities and Exchange Commission’s investigation is in its early stages, and the Federal Bureau of Investigations said it was monitoring the situation for possible criminal activity.

Shares of Citigroup fell 95 cents to $47.68 in Monday afternoon trading.


Julie DiMauro is the executive editor of FCPA Blog and can be reached here.

Share this post


Comments are closed for this article!