Citibank Fined $400 Mln By U.S. Banking Regulators For Risk Management Deficiencies

U.S. banking regulators have fined Citibank $400 million for failing to address “several longstanding deficiencies” across the company.

Responding to consent orders from the banking regulators, Citibank said it is disappointed that it has fallen short of the regulators’ expectations, and has “significant remediation projects underway” to strengthen its controls, infrastructure and governance.

The Office of the Comptroller of the Currency or OCC said in a statement that Citibank oversight was inadequate to address the serious and longstanding deficiencies and unsafe or unsound practices in the areas of risk management, internal controls, and data governance at the Bank.

The agency also issued a cease and desist order requiring the bank to take broad and comprehensive corrective actions to improve risk management, data governance, and internal controls.

The order also requires the bank to seek the OCC’s non-objection before making significant new acquisitions. It reserves the right to require changes in senior management if the bank does not act quickly to address its deficiencies.

At the same time, the Federal Reserve Board issued a cease and desist order that directs Citibank’s parent company Citigroup to correct practices previously identified by the Board in the areas of compliance risk management, data quality management, and internal controls.

The action comes after Citigroup failed to adequately address concerns related to risk management and controls that it previously identified in 2013 and 2015, the Federal Reserve Board said in a statement.

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