Company Involved in Money Laundering in the United States - Term Paper Example

The paper "Company Involved in Money Laundering in the USA" is a good example of a term paper on finance and accounting. Like other economies, the U.S economy is losing billions of dollars through unscrupulous monetary transactions and operations that are done in the underground economy.

Despite efforts by the International Monetary Fund (IMF) and the domestic financial institutions to fight this crime, money laundering is still on the rise globally. This has called for stiff measures and the establishment of policies aimed at fighting the crime. A survey by the IMF revealed that banking and financial institutions are the ones that are mostly targeted and involved in money laundering.  The latest company to be involved in money laundering is Banamex, a Mexican affiliate of Citigroup Bank.

Banamex happens to have been defrauded over $400 million in February 2014, thus ensnaring a criminal investigation against the bank and the possible parties involved in this criminal offense. According to the bank’s management, Banamex Bank has defrauded this amount of money as one of the schemes that involved a financial transaction with a shaky multinational oil and petroleum company in Mexico. Until this incident, Banamex USA has been a key participant in international money transfers targeting family members.

The Citigroup Bank (Los Angeles based) affiliate to Banamex received a subpoena grand jury relating to the Anti-money Laundering Compliance Act from Massachusetts’ federal prosecutors. This was consistent with the earlier federal regulators' reports that questioned the ability of Banamex USA to effectively govern, regulate, and oversee the effective implementation of the anti-money-laundering compliance act. The case is set for hearing later in July 2014, when the details and the money laundering and frauds crimes against Banamex will be confirmed or dismissed.

Accountants’ Responsibilities in Investigating Money-LaunderingForensic accounting investigations involve the application of auditing and accounting procedures and standards to discover, organize, analyze, and present sound evidence of any financial or economic nature for consideration in an administrative, official, or legal proceeding (Silverstone, 2012).