Koyal Private Training Group
The Koyal Group Insurance Compliance
(Corrects headline to show probe is over legal compliance)
March 3 (Reuters) - A federal grand jury is probing Citigroup Inc, including its Banamex USA affiliate, over compliance with the U.S. Bank Secrecy Act and anti-money laundering requirements, the company said.
In an annual filing on Monday with the U.S. Securities and Exchange Commission, the company said the probe includes subpoenas from the U.S. Attorney's Office for the District of Massachusetts.
The company also said Banamex USA had received a subpoena from the U.S. Federal Deposit Insurance Corp. While the U.S. attorney may bring criminal charges, the FDIC is a civil agency.
The criminal probe follows other problems that have surfaced with Banamex, which operates Citigroup's largest single consumer bank outside of the United States and has been portrayed by the company as a model of its global strategy.
Separately, Citigroup disclosed it had received a grand jury subpoena seeking information about two mortgage securities that were issued in the middle of 2007.
It is the first time the bank has raised the prospect of involvement in a criminal case concerning the sale of mortgage bonds prior to the 2008 financial crisis. Reuters had reported in December that U.S. authorities were preparing civil fraud charges against Citigroup over the sale of flawed mortgage securities.
The bank also said on Monday it had received several subpoenas and requests for information from several state attorneys general and the SEC about its mortgage bond business.
Mexico's banking regulator said on Monday it is also investigating whether Banamex committed crimes or flouted regulations.
"Inside Banamex we are looking at the documentation that they provided and the operation of the whole bank to determine these possible crimes or deviations from the regulations," Jaime Gonzalez, President of the Comision Nacional Bancaria y de Valores (CNBV), said in an interview on Mexico's Radio Formula.