Citigroup's Los Angeles-based subsidiary Banamex USA has agreed to forfeit $97 million to avoid criminal charges for having willfully failed to maintain an effective anti-money laundering program for at least six years, federal prosecutors disclosed Monday.
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.
Mexico's recent decision to ease limits on deposits of American currency has breathed new life into the illicit finance risks associated with U.S. dollar clearing operations, according to sources.
U.S. law enforcement officials are increasingly focusing their attention on the use by Mexican drug cartels of shell companies and corporate bank accounts in China and Hong Kong to launder proceeds from narcotics sales, sources told ACAMS moneylaundering.com.
The Financial Action Task Force published a mutual evaluation report on Mexico regarding its anti-money laundering and counterterrorist financing regime, noting that the country has a well-developed legal and institutional framework and understanding of its risks.
January 3, 2018
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