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Citigroup seeks a cut up from a Mexico enterprise that introduced it riches and scandal.

Citigroup will exit its shopper banking enterprise in Mexico, the place it has extra branches than in some other nation, closing the curtain on an operation that was each extraordinarily worthwhile and affected by scandal.

The financial institution introduced on Tuesday that it might both promote or take public Banco Nacional de México, higher often known as Banamex, which it bought in 2001 for $12.5 billion, as a part of its “strategic refresh.”

Citi will nonetheless provide institutional and funding banking companies for giant corporations in Mexico and personal banking choices for ultrawealthy residents of the nation. However it would not have branches there to serve particular person account holders or small- or middle-market companies. And it’ll not be sure up with an operation that has generated heavy regulatory scrutiny.

“We’ll have the ability to direct our assets to alternatives aligned with our core strengths and aggressive benefits,” Citi’s chief govt, Jane Fraser, mentioned in a press release emailed to journalists. “We are going to additional simplify our financial institution.”

In 2014, Banamex revealed that one among its most necessary purchasers, a Mexican oil companies agency, had defrauded the bank of $400 million and that, in a separate matter, bodyguards working for financial institution staff had been taking kickbacks from a few of the financial institution’s distributors.

In 2015, federal banking regulators and California fined a associated, U.S.-based Citi subsidiary, Banamex USA, $140 million for failing to have satisfactory anti-money-laundering controls in place, situations that regulators realized of whereas attempting to comply with the move of drug cash. Citi later shut down the U.S. enterprise and paid $97.4 million to settle a federal prison investigation into the matter.

Citi has additionally mentioned it would exit its shopper companies in Asia and Europe, a part of a plan to “deal with wealth facilities globally,” in response to its announcement on Tuesday. Citi earned $1.2 billion from its Mexican shopper enterprise in the course of the first three quarters of 2021. The financial institution is scheduled to report fourth-quarter outcomes on Friday.

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