Citibank Deferred Prosecution Agreement

As part of the agreement, Banamex acknowledged in the United States that it had not been able to criminally implement an effective money laundering program for money, according to the DOJ. Today, Assistant Attorney General Kenneth A. Blanco, of the Criminal Division of the Department of Justice, announced that Banamex USA (BUSA), a Los Angeles, California-based financial institution, and a subsidiary of Citigroup Inc., has agreed to withhold $97.44 million and has entered into a non-prosecution agreement (NPA) to resolve an investigation into violations of busa Bank Secrecy (BSA). In its agreement with the Ministry of Justice, BUSA acknowledged criminal offences by deliberately maintaining an effective anti-money laundering (AML) compliance program, with appropriate guidelines, procedures and controls for protection against money laundering, and by not deliberately submitting reports on suspicious activity (SAR). Banamex USA, a Mexican unit of Citigroup, will pay US$97.44 million and enter into a non-prosecution agreement to respond to accusations that the company violated Secrecy banking law. Non-enforcement agreements state that Banamex USA has “no history.” The transaction includes a non-prosecution agreement and a $97 million recovery by Citigroup, as indicated by the department and the bank in separate statements. The bank said it had already booked them for the fees. “The vast majority of Bank Secrecy Act cases have been resolved through deferred pleadings and policing agreements,” Garrett said. “Only six out of 54 resolutions since 2001 have been for non-prosecution agreements.” “The agreement is only a one-year agreement – it`s short – so we wonder how it is possible to improve compliance during this period.” The bank reached an agreement with the Department of Justice and the U.S. law firm in Boston for $97.44 million, without penalties against Citigroup C, -1.08 percent and a so-called no-chase agreement, according to the bank and the Justice Department. The investigation focused on activity within the bank`s Banamex-U.S. unit. In accordance with the non-persecution agreement, Citigroup has agreed to cooperate fully with this investigation and all other investigations conducted by the Department of Justice regarding violations of the Bank Secrecy Act and federal laundering laws and to report to the Department of Justice, for a period of one year, any evidence or allegations of violations of the Bank Secrecy Act or the money laundering.

“It`s not clear,” Garrett said. “It is remarkable that this is not just a non-persecution agreement, but the parent company, Citigroup, is only part of the agreement and is not a designated party. It is particularly strange that the agreement indicates that this company has ceased and dissolved all banking operations. As part of the agreement, Citigroup acknowledged that Banamex USA had violated the Bank Secrecy Act of 2007 at least between 2007 and 2012 at least. A generation ago, the Department of Justice rarely proposed deferred lawsuits on Wall Street and looking for savings and credit scammers.

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