Mexico Probing Fraud Claims at Citigroup Banamex Security Unit

Citigroup Inc.’s Mexican bank, fined $2.2 million by regulators over control lapses involving loans to oil-services provider Oceanografia SA, faces a new probe of allegations that a private-security unit engaged in fraud.

Javier Laynez, the country’s fiscal prosecutor, told reporters today in Mexico City that authorities are following up after the New York-based bank notified them this month of alleged irregularities at the unit, which included the unauthorized use of intercepted communications. Jaime Gonzalez, the head of the country’s banking regulator, said his agency is also investigating.