Reuters news agency reported that regulators charged the bank with "failing to prevent suspected money laundering." Citibank has been caught before courting big depositors, no matter how nefarious their operations may be. On Oct. 30, 1998, the General Accounting Office issued a report giving detailed information showing that the bank ignored the law and its own internal procedures in assisting Raul Salinas, brother of the former president of Mexico, to move between $90 million and $100 million of suspected drug money out of Mexico.For more information read Citibankisracist blog.
Remember those black employees who sued over those racist emails circulated by management? I do.
White vice presidents and lower-level employes of Citibank sent racist jokes throughout the megabank's interoffice E-mail, according to a lawsuit filed by enraged black workers.
The E-mail [contained] a series of spoofs on the black speech patterns known as Ebonics started at the bank's Wall Street offices and wound up at offices around New York and as far south as Florida.
Citibank forced to pay back $14M in sweeps money scammed from their customers.
Between 1992 and 2003, Citibank operated an "automatic sweeping" program that would without notice remove positive balances from customers' credit card accounts—mainly those of the poor and the recently deceased—and pocket the money. Now it's paying back $14 million dollars to the affected customers, plus another $3.5 million in penalties to California, thanks to that state's Attorney General.
Nice. Here is a pending MCAD filing.
Marc Dann v. Citibank, CASE NO. 2:07 CV 1149, 2008 U.S. Dist. LEXIS 52172
In the Complaint, Plaintiff alleges violations of the Ohio Consumer Sales Practices Act ("OCSPA"), Ohio Rev. Code § 1345.01 et seq. Specifically, Plaintiff alleges that CitiBank through its agent or employee, produced and distributed fliers on or around the Ohio State University main campus offering students a free sandwich and drink at Potbelly Sandwich Work's off-campus location, without disclosing that to obtain the free items, a student was required to complete an application [*3] for a CitiBank credit card.