FDIC Levies $140 Million Penalty Against Banamex USA

Citigroup said it would close Banamex USA, and pay $140 million to regulators who alleged the unit did not correct weaknesses identified in 2012 in its anti-money laundering programs.

The fine of $140 million imposed by the FDIC includes $40 million in civil penalties to be paid to California’s Department of Business Oversight.

FDIC’s $140 million penalty against Banamex USA

As part of its purchase of Banco Nacional de Mexico, Citigroup acquired what was then called California Commerce Bank in August 2001. Banamex USA has three branches in the U.S. in Century City, California, and in Houston and San Antonia. The branches aimed to ease the ability to transfer funds across the U.S.–Mexico...