Citi has been fined $135.6m by US regulators for not making sufficient progress in addressing risk management and data governance deficiencies, four years after a cease and desist order was issued.
According to Finextra, the Office of the Comptroller of the Currency (OCC) has amended the cease and desist order and imposed a $75m fine on Citi. Additionally, the Federal Reserve Board has levied a $60.6m fine for violations related to its 2020 enforcement action.
The OCC’s original order, which included a $400m fine, was due to Citi’s failure to rectify issues in enterprise-wide risk management, compliance risk management, data governance, and internal controls.
This order was based on the bank’s unsafe or unsound banking practices and its prolonged failure to establish effective risk management and data governance programs and internal controls.
Previously, in 2013, Citi entered into a consent agreement with the Federal Reserve to improve its anti-money-laundering compliance program, and in 2015, it was instructed to enhance compliance and control in its foreign exchange activities.
The original order required prompt action to improve risk management, data governance, and internal controls.
However, the recent amendment is due to what the OCC describes as Citi’s “failure to meet remediation milestones and make sufficient and sustainable progress.”
Acting Comptroller of the Currency Michael Hsu stated, “While the bank’s board and management have made meaningful progress overall, including taking necessary steps to simplify the bank, certain persistent weaknesses remain, in particular with regard to data. Today’s amendment requires the bank to refocus its efforts on taking necessary corrective actions and ensuring appropriate resources are allocated for this purpose.”
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