Mexico’s banking regulator has announced that it is investigating a security services unit at Citigroup’s Mexican arm Banamex following the disclosure of a $15m fraud at the unit.
The fraud is associated with expense claims submitted to the bank by the security unit, which was originally set up to protect the company’s board members and their families from attackers.
Go deeper with GlobalData
The regulator is probing the unit for possible administrative violations and has demanded the bank for more information, said Jaime Gonzalez, president of Mexico’s banking regulator.
Javier Laynez, fiscal prosecutor of the country, said that the bank has notified the authorities of alleged irregularities at the unit this month and that the authorities are following up.
Citigroup said that the unit has been disbanded and the services in Mexico will now be provided by the company’s global security staff.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
