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Get the anti-nausea drugs out.  Citi found in violation of money laundering laws by two different Federal bank regulators.  Now the Federal Reserve has also cited them and have given them 60 days to come up with a plan for compliance.  See here:

The Federal Reserve on Tuesday cited Citigroup Inc. for failing to comply with a federal law that requires banks to establish protections against money-laundering but didn't impose a fine. The Fed's action follows up on a similar order issued against Citigroup last year by two other bank regulators, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp., which cited it for "deficiencies" in its compliance with the Bank Secrecy Act, a law that requires banks to document suspicious transactions and set up systems to prohibit money laundering. The Fed said that Citigroup lacked effective systems of governance with respect to its Bank Secrecy Act and anti-money-laundering compliance programs. Citigroup has 60 days to submit a plan explaining steps the bank has taken to boost its compliance efforts.
Don't you wish you could violate federal law and just be asked to submit a plan how you would comply with it instead of being charged for violating the law you broke?  You think the IRS would be so kind?

Once again the banks' immunity is demonstrated.  Good thing we elected a President who goes after bank criminals as diligently as he goes after war criminals.  

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Comment Preferences

  •  Tip Jar (16+ / 0-)

    The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt. Bertrand Russell

    by accumbens on Tue Mar 26, 2013 at 08:38:24 AM PDT

  •  Eric Holder: (7+ / 0-)
    But I am concerned that thesize of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if we do prosecute — if we do bring a criminal charge — it will have a negative impact on the national economy, perhaps even the world economy. I think that is a function of the fact that some of these institutions have become too large.
    Eric Holder:
    Attorney General Eric Holderon Thursday defended the Justice Department's pursuit of medical marijuana growers and dispensers, saying they "took advantage" of state medical marijuana laws.

    collards, meat, butter, sourdough, eggs, cheese, raw milk

    by Tirge Caps on Tue Mar 26, 2013 at 08:44:58 AM PDT

  •  Thanks for posting, and just to clarify (2+ / 0-)
    Recommended by:
    accumbens, viral

    (in my own mind, if for nothing else) Citibank wasn't accused of actual money laundering, and didn't admit or deny wrong doing of that nature. Their safeguards against such activity weren't (apparently) up to snuff, according to the Fed, which is why, I guess, they weren't fined.

    The Federal Reserve is none too pleased with Citigroup's money-laundering controls. But don't worry, the big bank promises to do better.

    The Fed flagged Citi for lacking "effective systems of governance and internal controls to adequately oversee the activities" of its branches -- including those of the U.S. arm of Citi's Mexican bank, Banamex -- just to make sure they aren't laundering money for Mexican drug lords, Mahmoud Ahmadinejad, Kim Jong Un or other unsavory characters, according to a recent consent order the Fed made public on Tuesday.

    Citi did not admit or deny wrongdoing, and it was not ordered to pay a fine. But it did agree to tighten up its controls and make regular progress reports to the Fed about its compliance with the Bank Secrecy Act, which requires banks to watch and flag sketchy transactions.

    It's hard to reconcile the Fed's lax oversight and leniency wrt banks failure to operate withing the dictates of legal requirements, versus other watchdog agencies like EPA or OSHA.
    Too big to fail, to big to prosecute, too big to do more than slap the occasional wrist (or give a stern finger wag, more likely).


    Information is power. But; like all power, there are those who want to keep it for themselves. Aaron Swartz ~1986-2013~

    by Lisa Lockwood on Tue Mar 26, 2013 at 09:48:34 AM PDT

    •  I think this part is key: (2+ / 0-)
      Recommended by:
      Lisa Lockwood, allenjo
      failing to comply with a federal law that requires banks to establish protections against money-laundering
      It seems they were in violation of a law that requires banks to establish protections.  If they didn't establish protections, then they broke the law.  And now, after two other regulating agencies found the same thing last year, the Fed is giving them time to come up with a plan for such protections so they are no longer breaking the law.  At least that's how I read it: they have been and are breaking the law, there is no fine and they get to fix it.

      The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt. Bertrand Russell

      by accumbens on Tue Mar 26, 2013 at 10:00:46 AM PDT

      [ Parent ]

      •  Crime and Punishment in the US - 2 words that (1+ / 0-)
        Recommended by:
        accumbens

        do not go well together in the 2 tier justice system of the US that exists now.

        they have been and are breaking the law, there is no fine and they get to fix it.

        "Who are these men who really run this land? And why do they run it with such a thoughtless hand?" David Crosby

        by allenjo on Tue Mar 26, 2013 at 12:05:20 PM PDT

        [ Parent ]

  •  Gun and Drug traffickers need banks to operate (1+ / 0-)
    Recommended by:
    leu2500

    if we want to stop the drug and other illegal markets we have to prevent them from using banks to move money.

    lower level drug dealers who can't use banks keep cash at home, but if you are a major cartel I guess no problem

  •  Almost Recced this until I saw this: (0+ / 0-)
    Good thing we elected a President who goes after bank criminals as diligently as he goes after war criminals.
    1.  Presidents don't prosecute people.  

    2.  Presidents appoint people who make prosecutorial decisions, and the Senate consents to or blocks those appointments.

    3.  The Senate has not only never attempted to get guarantees from these appointees that they would go after banks and war criminals, nor pressured them to do so once confirmed, they have in fact quite explicitly demanded guarantees to the opposite.

    4.  We each, as individual citizens, have far more immediate and direct control over Congress than over the Executive branch.

    Step 1 to making sure leaders can't pass the buck is to stop doing it yourself.  

    Business doesn't distinguish between making money and taking money.

    by Troubadour on Tue Mar 26, 2013 at 01:43:05 PM PDT

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