Further to Laundering money: Citi and UOB in dog house, here's what an FT newsletter published today
Citigroup accused of being criminals' bank of choice
Citigroup was the bank of choice for members of a drug trafficking ring who believed it had less robust fraud controls, according to senior US law enforcement officials.
In an indictment unsealed last month, US prosecutors detailed how the bank was used by two California residents, who allegedly worked with the notorious Mexican Sinaloa Cartel, to deposit tens of thousands of dollars into its ATMs.
Drug Enforcement Administration officials told the FT that the duo, alleged to be part of a vast criminal network that cleaned at least $50mn in fentanyl and meth proceeds in the US, scoped out several banks before choosing Citi.
One senior official said: "There are banks that pay less attention than others."
A second senior DEA official said: "I will name one [bank]. There were two instances where in this investigation we had money couriers making 24 back-to-back deposits totalling $16,000 to a Citibank ATM . . . There were 15 back-to-back deposits totalling $20,000 also to a Citibank ATM . . . They figure out the places that are more favourable to them."
Citi declined to comment on the specific case, citing secrecy requirements around transaction reporting, but the bank said it had "robust anti-money laundering policies".
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