Citigroup Under Investigation for Ties to Sanctioned Russian Billionaire

(Reuters) – Citigroup (NYSE:C) is being probed by U.S. government agencies over its connections to sanctioned Russian billionaire Suleiman Abusaidovich Kerimov, according to Bloomberg News.

The investigation involves the U.S. Department of Justice, the Federal Bureau of Investigation, and the Internal Revenue Service. They are examining the bank's relationship with Delaware-based Heritage Trust, which holds assets owned by Kerimov.

A Citi spokesperson stated, "Citi is committed to conducting all business with the highest consideration for compliance with all applicable laws and regulations."

The spokesperson also mentioned that the bank is actively winding down nearly all institutional banking activities in Russia, aside from those necessary to fulfill remaining legal obligations, while moving forward with the closure of its Russian consumer banking business.

The investigation includes scrutiny of Citigroup's anti-money laundering policies and systems to prevent financial crimes, according to the Bloomberg report.

The DOJ, FBI, and IRS did not immediately respond to requests for comment from Reuters.

Kerimov has been sanctioned by the U.S. in 2014 and 2018 due to Russia's actions in Syria and Ukraine. In 2022, the U.S. enforced restrictions against Heritage Trust due to interests held by the Russian oligarch.