DBO Announces Record $40 Million Settlement with Citi Subsidiary Banamex USA
Resolves Allegations of Money Laundering Rule Violations
SACRAMENTO – The Department of Business Oversight (DBO) today announced Citigroup subsidiary
Banamex USA (BUSA) will pay the State $40 million in civil penalties to resolve allegations Banamex
violated federal laws that require banks to maintain adequate anti-money laundering programs.
The $40 million penalty is the largest ever assessed by the DBO against a bank.
“BUSA agreed three years ago to correct numerous weaknesses in its anti-money laundering program. It has
failed to do so,” said DBO Commissioner Jan Lynn Owen. “This new agreement holds BUSA appropriately
accountable for its continued violations.”
The DBO pursued the enforcement action jointly with the Federal Deposit Insurance Corporation (FDIC).
The FDIC today announced the assessment of a $140 million penalty against BUSA, which will be satisfied
in part by the DBO’s penalty. The FDIC penalty will be paid to the U.S. Department of the Treasury.
BUSA on Aug. 2, 2012 entered a consent order with the DBO and FDIC. The order required BUSA to take
actions in more than 20 separate areas to correct alleged violations of the federal Bank Secrecy Act, rules
governing anti-money laundering and compliance programs, and requirements to report suspicious activity by
Subsequent to the 2012 consent order, the DBO and FDIC found new, substantial violations of the BSA and
anti-money laundering mandates over an extended period of time. The “joint stipulation” that lays out the
settlement terms states the DBO and FDIC “have reason to believe” BUSA committed numerous violations
of federal laws and the 2012 consent order.
BUSA is a California state-chartered commercial bank, with branches in Los Angeles, San Antonio, TX and
Houston, TX. At the end of the first quarter of 2015, its assets totaled $1.06 billion.
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