03 Mar 2016
It has been revealed that US corporation, Citigroup Inc., received a subpoena from US authorities connecting the organisation to the FIFA corruption scandal.
The news came this week following Citigroup’s annual filing with its security regulators, which disclosed information about the subpoena, making Citibank – the banking division of Citigroup – the first US bank to officially reveal that it has been subpoenaed as part of the FIFA investigation.
Citigroup released a statement claiming that the subpoena came from the US Attorney for the Eastern District of New York, which requested information regarding Citibank and its connection to certain individuals, entities and transactions related to the scandal.
It is widely speculated that Citibank is being investigated for not carrying out the correct anti-money laundering measures for the transactions of senior FIFA officials.
Law authorities have alleged that these FIFA officials used US banks including Citigroup, JPMorgan Chase and Bank of America to transfer and receive up to $150m in bribes and other illicit payments.
A formal indictment of the FIFA scandal was released by US authorities last year. The document mentioned Citibank 15 times and specifically noted an unnamed co-conspirator who had transferred $1.2m from a bank in Qatar to a Citibank account controlled by former Vice President of FIFA, Austin ‘Jack’ Warner.
Warner is currently facing criminal charges for racketeering, wire fraud, money laundering and bribery, and has been banned from FIFA for life.
In October 2015, Swiss Bank Credit Suisse also revealed that it had been questioned by US and Swiss authorities over violations of anti-money laundering laws in relation to FIFA.
Citigroup has agreed to cooperate with the investigation but has so far refused to comment further on the matter.
Count reading this article to your CPD minutes, by signing up to our CPD WalletFREE CPD Wallet