International Financial Law Prof Blog

Editor: William Byrnes
Texas A&M University
School of Law

Monday, July 27, 2015

Citigroup to Close Banamex for Money Laundering Violation, Pay $180 Million in Fines

The Federal Deposit Insurance Corporation (FDIC) announced the assessment of a civil money penalty of $140 million against Banamex USA, Century City, California, for violations of the Bank Secrecy Act (BSA) and anti-money laundering (AML) laws and regulations.

In a concurrent action, the California Department of Business Oversight (CDBO) assessed a civil money penalty of $40 million. The FDIC's penalty of $140 million will be satisfied in part by the CDBO's penalty. The FDIC's penalty will be paid to the United States Department of the Treasury.

In taking this action, the FDIC determined that the bank failed to implement an effective BSA/AML 640px-FdicLogoCompliance Program over an extended period of time. The institution failed to retain a qualified and knowledgeable BSA officer and sufficient staff, maintain adequate internal controls reasonably designed to detect and report illicit financial transactions and other suspicious activities, provide sufficient BSA training, and conduct effective independent testing.

Attachment: Joint Order to Pay Civil Money Penalty

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