The country's third largest financial institution is asking the U.S. Treasury Department for licenses related to thousands of transactions involving Iranian-sanctioned banks in the Middle East and Latin America that it says were performed to comply with local laws in those regions. Citigroup is making the request to the Treasury's Office of Foreign Assets Control (OFAC) following dealings by its subsidiaries with Bahrain-based Future Bank, Banco Internacional de Desarrollo, headquartered in Caracas, and an unnamed institution in the United Arab Emirates, according to Securities Exchange Commission (SEC) filings released in mid-April. All three have been sanctioned by the U.S. government...
In internal reviews and an ongoing criminal and regulatory investigation, Citigroup employees and Mexican officials have privately voiced concerns that drug traffickers may have infiltrated Banamex's anti-money laundering department, say sources.
Foreign financial institutions and other non-U.S. companies newly tasked with disclosing when their affiliates deal with Iranian government officials are finding the requirements onerous, according to compliance officers and consultants.
New U.S. Treasury Department banking restrictions designed to hamstring Iran's nuclear program will curtail personal remittances and the ability to receive payments for licensed exports to the country, say analysts.
The U.S. regulator of national banks said Thursday in a consent and cease-and-desist order that Citibank N.A. must grant its anti-money laundering compliance department a greater say in business decisions.