The Bank Slate


Inadequate remediation progress leads to $136M penalty for Citigroup

Citigroup will pay a total of $136 million for not moving quickly enough to address four-year-old consent orders that require the New York company to address its internal control systems and compliance risk management.

The Office of the Comptroller of the Currency and the Federal Reserve said that the $2.4 trillion-asset company hasn’t made enough progress tackling violations in their October 2020 consent orders.

The OCC said that Citigroup had “failed to make sufficient and sustainable progress” complying with its order. “Continuing noncompliance … “constitutes unsafe or unsound practices,” the agency added.

Citigroup also “lacks processes to monitor the impact of data quality concerns on regulatory reporting,” the OCC’s order said.

The Fed said a 2023 review found “ongoing deficiencies” in data quality management, along with “ineffective compensating controls” to reduce any associated risks. The review found that the company’s plan to improve its data quality management program was inadequate.

Citi must pay the OCC a $75 million civil money penalty; it agreed to pay $60.6 million to the Fed. Citi did not admit or deny the agencies’ findings.

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