Citigroup said last week in a securities filing that it’s under investigation in connection with the bribery, corruption, and money laundering scandal that toppled leadership of the Fédération Internationale de Football Association, the international governing body of professional soccer.
In May 2015, the Department of Justice indicted 14 people on corruption charges. Among the allegations are that Jack Warner, FIFA's former vice president, accepted a $10 million bribe to secure South Africa’s bid to host the 2010 World Cup. The indictment names 26 banks that did business with FIFA—including Bank of America, Barclays, HSBC, Citigroup, and JPMorgan Chase—in its litany of various bribery schemes.
As Compliance Week previously reported, financial institutions can expect to be in the hot seat for a long time as the government scrutinizes their role with a fine tooth comb in connection with FIFA. Now, we are starting to see the fruits of that labor.
In a Form 10-K, Citibank disclosed on Feb. 26 that it has received a subpoena from the U.S. Attorney for the Eastern District of New York in connection with FIFA. “The subpoena requests information relating to, among other things, banking relationships and transactions at Citibank and its affiliates associated with certain individuals and entities identified as having had involvement with the alleged corrupt conduct,” the bank said.
Citi said it is cooperating with the authorities in this matter.