Banamex Fined $140M|for Skirting Bank Rules

     SACRAMENTO, Calif. (CN) – State and federal authorities on Wednesday ordered the U.S. subsidiary of Mexican bank Banamex to pay $140 million for not implementing anti-money laundering safeguards required by federal law.
     The fine against Banamex USA was revealed in a joint statement by the Federal Deposit Insurance Corporation and the California Department of Business Oversight. The bank agreed to pay the fine to settle the case, the FDIC said.
     California’s share of the fine will be $40.
     The Bank Secrecy Act requires banks to retain an officer and sufficient staff with knowledge and training to spot illicit transactions and other suspicious activities, including money laundering. Banamex USA in Century City, Calif. did not comply with these requirements, the FDIC said.
     Banamex is the second-largest bank in Mexico, behind BBVA Bancomer, and has operated as a subsidiary of Citigroup since the U.S.-based bank bought it in 2001.

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