US banking giant Citigroup will pay out $135.6 million to regulators for failing to resolve long-standing problems with the bank’s risk management, compliance, data processing and internal controls.
The Federal Reserve and the Office of the Comptroller of the Monet (OCC) imposed the collective penalty for failing to address deficiencies identified in two enforcement actions in the fourth quarter of 2020.
At the time, Citigroup agreed to undergo remediation efforts designed to revamp its data management and internal controls programs.
But in a new review, regulators say they have determined the bank has failed to make enough progress that would have addressed their concerns.
“Citibank must understand its transformation and fully address its longstanding shortcomings in a timely manner.
While the bank’s board and management have made meaningful progress overall, including taking the necessary steps to simplify the bank, certain persistent weaknesses remain, particularly in relation to data. Today’s amendment requires the bank to refocus its efforts on taking the necessary corrective actions and ensure that appropriate resources are allocated for this purpose.”
The Fed warns that it will impose additional penalties and take formal action if Citigroup fails to correct ongoing violations.
According to the Violation Tracker database, Citigroup has paid more than $26.945 billion in fines since 2000 to resolve enforcement actions, including securities misuse, banking violations, investor protection violations and other violations.
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