A U.S. Justice Department criminal investigation into money-laundering controls at Citigroup’s Banamex USA unit has uncovered potential violations serious enough to merit a fine under the Bank Secrecy Act, according to people familiar with the probe.
Bloomberg News reports that prosecutors are looking, in part, at e-mails from lower-level employees at the unit who raised concerns about lax anti-money-laundering practices, said two people who asked not to be identified because the matter is confidential.
Among issues raised in the e-mails: employees’ concerns that they didn’t know enough about the recipients of large cash transfers; requests for more resources for compliance staff; and complaints, spanning years, that managers weren’t being responsive.
The investigation into money-laundering controls at Banamex USA, conducted by the U.S. Attorney’s Office in Massachusetts, isn’t expected to be finished until next year, the people said.
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