Drug dealers allegedly successfully laundered money through ATMs. They remarkably often used Citigroup ATMs.
According to U.S. law enforcement authorities, drug dealers had a particular preference for Citigroup ATMs when laundering money. The alleged perpetrators believed that the controls at the U.S. institution were less restrictive than those at other banks, writes the «Financial Times.»
Specifically, the case involves two individuals from California. They are said to have collaborated with the Sinaloa cartel and deposited tens of thousands of dollars at Citi ATMs, laundering the money in this way. The Sinaloa cartel is a Mexican criminal organization involved in drug trafficking, money laundering, and human trafficking.
Depositing Dozens of Small Amounts
According to the indictment, the suspects allegedly deposited approximately $36,000 of illegal cash at the ATMs at least three times in January 2021. By breaking down the sum into dozens of smaller deposits, the prosecutors claim, they remained below the $10,000 threshold at which banks must report cash transactions to the U.S. Treasury Department. Later, they withdrew the money again.
Although there were no reporting requirements for the individual transactions, the bank should have become suspicious due to the high number of deposits, according to law enforcement authorities.
Money Originated From Drug Business
Officials from the Drug Enforcement Administration (DEA) stated, according to the media report, that the money came from the trade of fentanyl and methamphetamine drugs. The total amount involved is at least $50 million.
Citi declined to comment on the specific case, according to the «Financial Times.» The institution cited, among other things, confidentiality requirements. However, the bank emphasized that it has a «robust anti-money laundering policy» and informs the authorities in cases of suspicion.
The two defendants pleaded not guilty.
