A recent indictment unsealed by the Financial Times alleged that two California residents working with Mexico's Sinaloa drug cartel used Citi ATMs to deposit tens of thousands of dollars in cash without triggering money laundering alerts.  

Mexico's Sinaloa Drug Cartel Members Laundered Money via Citi ATMs

According to the indictment, the two men allegedly funneled almost $36,000 in drug proceeds into the ATMs by making multiple small deposits to evade the $10,000 transaction reporting threshold mandated by US Treasury regulations.

Officials from the Drug Enforcement Administration (DEA) told FT that these individuals, who were part of a broader network accused of laundering over $50 million from methamphetamine and fentanyl sales, selected Citi due to perceived leniency compared to other banks.

According to another official interviewed by the FT, during the investigation, two incidents were found to have money couriers making 24 consecutive deposits totaling $16,000 to a Citibank ATM. The official added that 15 consecutive deposits totaling $20,000 were also made at the same Citibank ATM. 

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Response of Citi

A Citi spokesperson told PYMNTS that, since the company adhered to Bank Secrecy Act requirements, it could not comment on the allegations in the FT report.

However, the spokesperson noted that Citi has "robust anti-money laundering policies and practices" designed to detect and report suspected money laundering activity to the government as mandated by law.

READ MORE: Mexican Sinaloa Cartel Conspired With Chinese Banking Group to Launder $50 Million, US DOJ Says