New York: Citigroup and its Banamex USA unit received a grand jury subpoena from the the US Federal Deposit Insurance Corporation (FDIC), Citi said Monday in a securities filing.
Citigroup also claimed that it is giving out full cooperation with these inquiries. The investigations that were revealed on Monday, followed the US regulatory action against Citi for poor oversight of anti-money laundering and bank secrecy. The security filing did not address whether the subpoenas on money laundering were connected to Citi's disclosure of fraudulent billings at Banamex.
The consent order of March 2013 stated that Citi agreed with the US Federal Reserve to upgrade its bank secrecy and anti-money laundering practices in order to remedy deficiencies with compliance. On Friday, Citi cut its 2013 earnings of $235 million after discovering that it lost some $400 million at Banamex due to fraudulent billings by a Mexican oil services company, Oceanografia.
