Citigroup fined £43.9m for regulatory reporting failures

The UK’s Prudential Regulation Authority (PRA) has fined Citigroup £43.9m for failings in relation to their internal controls and governance arrangements.

This financial penalty has been placed on Citigroup Global Markets, Citibank N.A. London branch and Citibank Europe UK branch.

Between 19 June 2014 and 31 December 2018, the firm failed to have implemented sufficient regulatory reporting framework. In turn, this led to them failing to submit complete and accurate regulatory returns to the PRA.

While Citi always kept to its liquidity and capital requirements, the failings were allowed to go on for a significant length of time and were serious and widespread. They resulted in major errors in its returns.

The PRA’s investigation focused on Citigroup’s capital and leverage returns, liquidity returns and branch returns. Its probe found that while Citi had begun a remediation programme to address data quality issues, the internal controls and governance arrangements were not effective.

Sam Woods, deputy governor for Prudential Regulation and CEO of the PRA said, “Accurate regulatory returns from firms are vital for the PRA in fulfilling our role. Citi failed to deliver accurate returns and failed to meet the standards of governance and oversight of regulatory reporting which we expect of a systemically important bank.”

Citi agreed to resolve the issue which qualified it for a 30% reduction in the fine. The full fine, without the discount, was $62.7m.

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