Banamex USA, Century City, CA
On July 22, 2015, the FDIC announced that it had joined the California Department of Business Oversight (CDBO) in ordering the assessment of a $140 million civil money penalty against Banamex USA, Century City, California, for violations of the Bank Secrecy Act (BSA) and anti-money laundering (AML) laws and regulations. Of that sum, $40 million will be paid to the CDBO, and the remaining $100 million will be paid to the U.S. Treasury Department. The FDIC determined that the bank failed to implement an effective BSA/AML Compliance Program over an extended period of time. The institution failed to retain a qualified and knowledgeable BSA officer and sufficient staff, maintain adequate internal controls reasonably designed to detect and report illicit financial transactions and other suspicious activities, provide sufficient BSA training, and conduct effective independent testing.
Banamex USA is a subsidiary of Citigroup, Inc. It has one office in Century City, and offices in Houston and San Antonio, Texas. FDIC records indicate the bank remained open November 23, 2008, with government open bank assistance.
From the CMP Order: "The FDIC and the Commissioner [of the CDBO] considered the matter and determined that they have reason to believe that the Bank committed violations of law including but not limited to violations of the Bank Secrecy Act, 31 U.S.C. §: 5311 et seq., 12 U.S.C. sect; 1829b, 12 U.S.C. §§ 1951-1959, end its implementing regulations, 31 C.F.R. Chapter X, section 326.8 and Part 353 of the FDIC's Rules and Regulations ... and sections 23A and 23B of the Federal Reserve Act, 12 U.S.C. §§ 371c and 371c-1. The FDIC and the Commissioner have also determined that they have reason to believe that the Bank meets the requirements for a "Tier II" civil money penalty, pursuant to 12 U.S.C. § 1818(i)(2)(B). In addition, the FDIC and the Commissioner have determined that they have reason to believe that the Bank has failed to comply with the August 2, 2012 Consent Order issued by the FDIC and the Commissioner pursuant to 12 U.S.C. § 1818(b) and Section 580 of the [California] Financial Code."