Citigroup, an American multinational investment banking and financial services company headquartered in New York, was fined a total of 135,6 million dollars by US banking regulators due to insufficient progress in solving problems in data management identified in 2020. The fines were accompanied by a requirement to demonstrate adequate investments to improve these efforts.
The Federal Reserve fine
La Federal Reserve imposed on Citigroup a fine of 60,6 millions of dollars for failing to meet the enforcement measures established in 2020. These measures were introduced to address deficiencies in data quality management and to implement adequate controls to manage ongoing risks. According to the Federal Reserve, Citigroup has showed insufficient progress in solving these critical problems.
The Board continues to monitor Citigroup's actions to comply with the 2020 action, which remains in effect.
The intervention of the Office of the Comptroller of the Currency
Another sanction instead came fromOffice of the Comptroller of the Currency (OCC), a federal agency responsible for regulating and supervising all national banks and branches of foreign banks in the United States.
The OCC has issued a change to thecease and desist order of October 7, 2020 against Citibank. This change was motivated by theinability of the bank to achieve objectives remediation and to make sufficient progress toward compliance with the provisions of the original order.
The change is accompanied by a fine of 75 million dollars, with the aim of pushing Citibank to dedicate adequate resources to improvement of corporate risk management and data governance.
“The change is based on the bank's failure to meet cleanup milestones and make sufficient and sustainable progress toward compliance with the 2020 Ordinance,” reads a statement. “The decision was issued to ensure that Citibank prioritizes to the reclamation work, also through the allocation of sufficient resources".
“Citibank must undertake its transformation and fully address its long-standing shortcomings in a timely manner,” he said Michael J. Hsu, Acting Comptroller of the Currency – While the Bank's Board of Directors and management have made significant progress overall, including taking the necessary steps to simplify the Bank, there remain some persistent weaknesses, particularly regarding data.”
Citigroup: fined 79 million by British authorities in May
The difficult period continues for Citigroup. In May, she was fined by British financial authorities following errors in trading and control systems. The sanction of 79 million dollars was announced on May 22 and concerned issues that emerged in the period from April 1, 2018 to May 31, 2022. According to authorities, Citigroup's lack of adequate controls caused several trading accidents.
