Citigroup Settles With Justice Department Over Money Laundering
May 22 2017 - 11:42AM
Dow Jones News
By Emily Glazer and Telis Demos
Citigroup Inc. has agreed to pay less than $100 million to
settle a yearslong money laundering investigation, the bank and
government agencies announced Monday.
The bank reached a settlement with the Justice Department and
U.S. attorney's office in Boston for $97.44 million, with no
sanctions against Citigroup and a so-called nonprosecution
agreement, according to the bank and Justice Department. The
investigation centered on activity in the bank's Banamex USA
unit.
As part of the agreement, Citigroup admitted that Banamex USA
violated the Bank Secrecy Act from at least 2007 until at least
2012.
The agreement is far less than previous money laundering
settlements with large banks and is one of the first to emerge
since the change in presidential administrations. Other deals with
big banks have often topped $1 billion and involved so-called
deferred prosecution agreements or criminal guilty pleas.
Citigroup said in a statement that it was "pleased to resolve
these matters." The bank said it will be finished with winding down
Banamex USA by June 30. "Among our most serious obligations as a
bank is to achieve the strongest possible system for
anti-money-laundering and sanctions compliance to protect the
integrity of the financial system," the bank added.
Write to Emily Glazer at emily.glazer@wsj.com and Telis Demos at
telis.demos@wsj.com
(END) Dow Jones Newswires
May 22, 2017 11:27 ET (15:27 GMT)
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