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Citigroup Uncovered $15 Million Fraud in It’s Mexico Banamex Division
Citigroup Inc. announced Tuesday that an independent probe found evidence of $15 million in fraud at the personal security unit belonging to Banamex, the U.S.-based financial giant’s Mexican division.
“While the fraud is not financially material, the conduct of the individuals involved is appalling,” Citi CEO Michael Corbat said in a statement.
Citi is collaborating with the relevant authorities in the United States and Mexico and plans to “hold the individuals who conducted these activities accountable,” according to the statement.
The company turned in July to an outside law firm to conduct an investigation of the unit providing personal security for Banamex staff.
The probe detected “the unauthorized providing of security services to outside parties, and the use of intercepted telecommunications,” Citi said.
The unit in question is being dismantled and its functions will be assumed by Citigroup’s global security apparatus, the statement said.
Earlier this year, Citi disclosed that Mexican oil-services firm Oceanografia fraudulently obtained at least $400 million in loans from Banamex.
“Over the last several months, we have been reviewing our franchise in Mexico and have already made significant changes to strengthen our processes and controls. We will continue to take whatever steps are necessary to make sure that every part of our global franchise lives up to our standards,” Corbat said Tuesday.
Published in Latino Daily News
Source: http://www.hispanicallyspeakingnews.com/latino-daily-news/details/citigroup-uncovered-15-million-fraud-in-its-mexico-banamex-division/31322#When:18:00:22Z
