The U.S. is investigating Citigroup’s connection to Suleiman Kerimov, a sanctioned Russian billionaire whom American officials say financially benefited from corruption in the Russian government, according to multiple reports.
An investigation focuses on services provided by the bank for a trust that held the sanctioned ... [+]
The Justice Department, the FBI and the IRS are probing the services Citigroup provides for Heritage Trust, which holds assets belonging to Kerimov, people familiar with the matter told Bloomberg.
The Treasury Department blocked Kerimov from accessing assets worth $1 billion from the Delaware-based Heritage Trust in June 2022, citing an investigation into Kerimov’s “use of a network of relatives, advisors” and other entities to invest in U.S. companies.
The three agencies will also investigate Citigroup’s financial compliance framework, including how the bank prevents money laundering and other processes intended to prevent other 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, ranking him as the 230th-richest person in the world, according to our latest estimates. Kerimov invested in the Russian state-run energy firm Gazprom, in addition to other investments in Morgan Stanley, Goldman Sachs and Deutsche Bank. He later acquired a 37% stake in Polyus, Russia’s largest gold producer.
Kerimov, a Russian oligarch, has been the focus of scrutiny in the U.S. for years. The Treasury Department sanctioned Kerimov in 2018 for financially benefitting from his ties to the Russian government and Russian President Vladimir Putin. Kerimov was detained in France in 2017 after allegedly laundering hundreds of millions of euros into the country, according to the agency. In 2022, the Justice Department seized Kerimov’s $300 million superyacht, claiming he used the vessel to violate money laundering and conspiracy laws in the U.S. and other countries.
Citigroup has also faced recent scrutiny over its internal processes: In July, the bank was fined $75 million by the Office of the Comptroller of the Currency for failing to improve oversight of risk management services.