U.S. DOJ expands money-laundering probe to Citi's Mexico unit - Bloomberg
July 24 (Reuters) - The U.S. Department of Justice has expanded its money-laundering probe to Citigroup Inc's Mexican unit, Bloomberg reported on Friday.
Citigroup's Banamex USA unit was already under investigation by U.S. regulators for possible breaches of anti-money laundering laws.
The bank on Wednesday said it would shut its Banamex USA operations and pay $140 million to resolve allegations that the unit violated federal laws requiring banks to maintain adequate anti-money laundering programs. (reut.rs/1DCbMSP)
The latest investigation looks at whether Citigroup let customers move illegal cash through Banco Nacional de Mexico, Bloomberg said, citing documents it had reviewed. (bloom.bg/1Oqgfh4)
The Mexican unit was subpoenaed by the DOJ in January for information about its anti-money-laundering controls, seeking documents about its due diligence on operations involving hundreds of clients, the report said.
Mexico City-based Banco Nacional de Mexico embarrassed Citigroup last year when it lost more than $500 million on fraudulent loans to a supplier to state-run oil giant Pemex . (Reporting by Krishna Chaithanya in Bengaluru)
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