NEW YORK, Feb 26 — Citigroup Inc said additional government authorities have started probes of possible breaches of anti-money laundering laws at its Banamex USA unit.
The Financial Crimes Enforcement Network, a unit of the US Treasury, and the California Department of Business Oversight have asked the company for information on its compliance with the Bank Secrecy Act and anti-money laundering rules, Citigroup disclosed in an annual filing with the US Securities and Exchange Commission yesterday.
The disclosure comes one year after Citigroup revealed a criminal probe by a federal grand jury in Massachusetts and inquiries from the US Federal Deposit Insurance Corp into the matter.
Citigroup said it is cooperating with the investigations.
Banamex USA is an affiliate of Mexico City-based Banamex, which Citigroup bought in 2001 and which operates a few branches in the United States.
The filing yesterday also showed that Citigroup has reduced its estimate of possible unreserved legal costs to US$4 billion (RM14.41 billion) from US$5 billion at the end of September. — Reuters
