Citigroup to be investigated regarding involvement on FIFA's bribe scandal
Feb 29, 2016 01:46 AM EST
Citigroup Incorporated has received a subpoena regarding the recent bribery scandal that the FIFA organization is facing. The company will be the first US bank to divulge any information regarding the said issue.
The US attorney for the Eastern District of New York was the one who requested for the subpoena to be given to Citigroup. The government wants to get information regarding certain individuals who are linked to the issue and to identify the people who were involved in the alleged corruption. The prosecutors are also looking at the bank's responsibility regarding the case.
This will now take a closer look at how financial companies practice their money-laundering regulations which have been scrutinized lately. Banks like HSBC, Standard Chartered, and Delta National Bank are now also being looked into, as per Wall Street Journal.
The investigation of these banks together with the alleged entities are still ongoing which is being conducted by Brooklyn prosecutors. However, experts say it might end up with no accountable party. The status of the investigation of the Department of Financial Services which is the top banking regulator of New York is also unclear.
According to Yahoo, it was just May last year when the US government filed corruption cases against 14 former and current FIFA officials, governing body and executives which were alleged of taking $150 million in bribe and pay off money.
FIFA's new president, Gianni Infantino, who took the place of Sepp Blatter said he will help set the priority for one of the sport's most powerful bodies and will also oversee the World Cup as it tries to bounce back against these scandals, as per Bloomberg.
The case which was filed last May involved more than twenty banks that were allegedly used by these FIFA officials. They were able to transfer and receive bribe money from the banks which included Barclays LP, JP Morgan Chase and Co, Bank of America Corp, HSBC, Standard Chartered and Citi.