DoJ probes Citigroup unit over suspicious transactions: WSJ


The Justice Department is investigating whether a Citigroup unit in California failed to alert the government about suspicious banking transactions along the U.S.-Mexico border, The Wall Street Journal reported, citing people familiar with the matter.

U.S. prosecutors want to know why Citigroup did not submit so-called suspicious-activity reports flagging the questionable transactions that in some cases involved suspected drug-cartel members, the newspaper said.

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A segment of the the border fence separating the U.S. from Mexico.
Frederic J. Brown | AFP | Getty Images

The Justice Department and Citigroup were not immediately available for comment outside regular business hours.

Last week Reuters reported that Federal authorities have opened a criminal investigation into a $400 million fraud involving Citigroup's Mexican unit.

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Citigroup disclosed in February it had discovered at least $400 million in fraudulent loans in its Mexico subsidiary, Banco Nacional de Mexico, known as Banamex, and said employees may have been in on the crime.

By Reuters