U.S. Authorities Investigate Citigroup Over Ties to Sanctioned Russian Oligarch Suleiman Kerimov

Citigroup is under investigation by multiple U.S. government agencies over its connections to sanctioned Russian billionaire Suleiman Abusaidovich Kerimov, according to a report by Barron’s, which cites a source familiar with the matter.

The probe, led by the Department of Justice (DOJ), the Federal Bureau of Investigation (FBI), and the Internal Revenue Service (IRS), focuses on the bank’s dealings with Heritage Trust, a Delaware-based entity that holds assets owned by Kerimov.

“Citi is committed to conducting all business with the highest consideration for compliance with all applicable laws and regulations,” a Citi spokesperson stated. The bank emphasized its ongoing efforts to scale back operations in Russia, saying, “At the same time, we are actively ending nearly all of our institutional banking business in Russia, except for those operations necessary to fulfill remaining legal and regulatory obligations, while we proceed with the closing of our Russian consumer banking business.”

The investigation reportedly includes an examination of Citigroup’s anti-money laundering (AML) practices and its client vetting processes, according to the *Barron’s* report.

Neither the DOJ, FBI, nor IRS immediately responded to Reuters’ requests for comment on the matter.

Kerimov has been subject to U.S. sanctions since 2014 and 2018 due to Russia’s military actions in Syria and Ukraine. In 2022, U.S. enforcement actions targeted Heritage Trust, imposing restrictions on the entity because of Kerimov’s ownership interests.

The investigation highlights ongoing scrutiny of financial institutions for their compliance with sanctions regulations and their handling of transactions involving high-risk clients.

By fLEXI tEAM