Friday, February 27, 2015


For readers who have seen the many articles commenting upon Citigroup's Form 10-K disclosure, filed on February 25, 2015, about its receipt of subpoenas, including a reference to a Grand Jury subpoena, regarding the bank's BSA and AML compliance program, here is the complete text of the Citigroup statement. If you can disregard the legalese, it appears to be a warning that the bank's affiliate, Banamex USA, is a target of both law enforcement, and regulatory agencies, for BSA and AML deficiencies.

The paragraph appears at page 296 of the filing:

"Citigroup and Related parties, including Citigroup's indirect, wholly-owned subsidiary,
 Banamex USA (BUSA), a California state-chartered bank, have received Grand Jury
 Subpoenas issued by the United States Attorney's Office for the District of Massachusetts,
 concerning, among other issues, policies, procedures and activities related to compliance
 with the Bank Secrecy Act (BSA) and anti-money laundering (AML) requirements, under
 applicable federal laws and banking regulations. Banamex USA also has received a subpoena
 from the FDIC, related to its BSA and AML compliance programs. Citigroup and BUSA also
 have received inquiries, and requests for information, from other regulators, including the
 Financial Crimes Enforcement Network and the California Department of Business Oversight, concerning BSA- and AML- related issues. Citigroup is cooperating fully with these inquiries."

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