The United States is investigating Citigroup’s connection to Suleiman Kerimov, a sanctioned Russian billionaire who officials say benefited financially from corruption in the Russian government, according to multiple reports.
The Justice Department, the FBI and the IRS are investigating the services Citigroup provides to the Heritage Trust, which holds Kerimov assets, people familiar with the matter told Bloomberg.
The Treasury Department blocked Kerimov from accessing $1 billion in Delaware-based Heritage Trust assets in June 2022, citing an investigation into his “use of a network of family members, advisors” and other entities to Invest in American companies.
The three agencies will also investigate Citigroup’s financial compliance framework, including how the bank prevents money laundering and other processes aimed at preventing financial crimes, according to Barron’s, citing a person with knowledge of the situation.
Citigroup did not immediately respond to a request for comment from Forbes.
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Kerimov has a fortune valued at $10.7 billion, making him the 230th richest person in the world, according to the most recent estimates by Forbes.
Kerimov invested in the Russian state energy company Gazprom, in addition to other investments in Morgan Stanley, Goldman Sachs and Deutsche Bank. It subsequently acquired a 37% stake in Polyus, Russia’s largest gold producer.
Kerimov, a Russian oligarch, has been the subject of scrutiny in the United States for years. The Treasury Department sanctioned Kerimov in 2018 for benefiting financially from his ties to the Russian government and President Vladimir Putin.
Kerimov was arrested in France in 2017 after allegedly laundering hundreds of millions of euros in the country, according to the agency.
In 2022, the Justice Department seized Kerimov’s $300 million superyacht, alleging that he used the vessel to violate money laundering and conspiracy laws in the US and other countries.
Surprisingly, Citigroup has also faced recent scrutiny over its internal processes: In July, the Office of the Comptroller of the Currency fined the bank $75 million for failing to improve oversight of risk management services.
This article was originally published by Forbes US
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