Not Just Crypto, Citigroup Accused of Facilitating Drug Money Laundering
Besides cryptocurrencies, drug traffickers have reportedly opted to launder money through Citigroup, viewing the bank as accommodating due to perceived weaker fraud prevention measures.
According to US law enforcement officials, two Californians deposited large sums of cash at Citibank ATMs, raising money laundering concerns. They are reportedly linked to the Sinaloa drug cartel, one of the world’s most dominant drug trafficking organizations.
The Financial Times reported Monday that the two men, Guillermo Zambrano and Luis Belandria-Contreras, deposited nearly $36,000 in suspicious cash installments at Citibank ATMs in Jan. 2021.
The report details how they allegedly made multiple deposits of a few hundred dollars each. They did so with short intervals between transactions, potentially to avoid triggering anti-money laundering measures.
Citigroup didn’t return Cryptonews’ request for comment by press time.
Prosecutors allege the men split the larger sum into numerous smaller deposits, each under $10,000. This approach, they believe, helped avoid triggering mandatory cash transaction reports that banks must file with the US Treasury.
Officials from the Drug Enforcement Administration told FT that the two individuals are suspected members of a large criminal organization. The organization laundered at least $50m from fentanyl and meth sales in the US. They reportedly surveyed multiple banks before selecting Citigroup.
One official pointed out that certain banks have looser oversight, implying Citigroup might have offered an easier path.
Also, the DEA official argued that the repeated small deposits were a cause for concern. Even if they fell below reporting thresholds, they should have been investigated further.
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