Federal investigators have opened an inquiry into Citigroup’s Mexican unit, over a recent a $400 million fraud case.
Banamex, Citigroups Mexican unit, disclosed in February that at least on Banamex employee had processed falsified documents that helped the oil services company obtain a loan that cannot be repaid.
The investigation will be overseen by the FBI and US Attorney’s office of Manhattan and will focus on whether or not the bank ignored warning signs and cultivated holes in its internal monitoring systems such that the fraud was enabled.
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