Fraud At Banamex Citigroup Gets Into Trouble

Posted On 04 Mar 2014
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Tag: Citigroup gets into trouble, fraud at Banamex, fraud detected by Banamex

Citigroup has received subpoenas from the U.S. authorities for information on the activities of its subsidiary in Mexico, days after revising downward its 2013 results of a fraud detected by Banamex.

In a filing today with the Securities and Exchange Commission in the U.S., (SEC), and the bank informs the regulator has received subpoenas from the Federal Deposit Insurance Corporation (FDIC) and the Office of the Federal Attorney in Massachusetts.

The citations received by Banamex USA are related to “policies, procedures and activities concerning compliance with the Bank Secrecy Act and regulations against money laundering under federal banking laws and regulations.”

Citigroup is cooperating fully with these investigations,” said the third U.S. bank by assets in the document submitted to the SEC, which does not specify whether they are related to fraud detected in Banamex.

Citigroup announced last Friday it revised down its 2013 results on 235 million net after discovering a fraud in its Mexican subsidiary, Banamex, also reported officially changes today to the SEC.

The fight against money laundering

Citations occur after a year the Federal Reserve (Fed) urged Citigroup to improve its internal controls to prevent money laundering and the bank gave it two months to submit a written plan to the steps taken in this regard.

Previously, the Office of the Comptroller and the FDIC had issued similar recommendations to Citigroup, considering that the company “lacked effective monitoring systems regarding the Bank Secrecy Act,” including its Mexican subsidiary, Banamex.

This weekend, The Wall Street Journal reported that the headquarters of the Federal Bureau of Investigation (FBI) in New York is reviewing the alleged fraud of Citigroup’s subsidiary in Mexico to determine if any criminal violation was committed.

The Mexican attorney general’s office (PGR) intervened last Friday the company Oceanography, to the suspicions that have allegedly defrauded the bank Banamex, owned by Citigroup.

The PGR said that on 11 February, the authorities at the request of Pemex, sanctioned the company for “irregularities in the granting of guarantees” have been found to perform contracts with the public sector.

According to reports in the Mexican press, the company belongs to Armando Yanez Oceanography and she is allegedly linked Jorge Alberto and Manuel Bribiesca SahagĂşn, children of Marta Sahagun, wife of former President Vicente Fox

Ecuador in the last trading session, shares of Citigroup fell 1.83% on the New York Stock Exchange (NYSE), which has depreciated 8.35% since the beginning of the year, although in the last twelve months they have risen 13.42%.

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