Citigroup Hit with $60.6 Million Fine by Federal Reserve Over Risk Management Issues
The U.S. Federal Reserve has fined Citigroup $60.6 million for persistent deficiencies in risk management and data quality practices. Citing insufficient progress since a 2020 compliance order.
Despite Citigroup’s submission of a remediation plan. The Federal Reserve found the bank’s efforts lacking in effective controls, resulting in ongoing compliance and risk management issues. This penalty underscores Citigroup’s failure to meet required milestones in areas such as data governance, compliance risk, capital planning, and liquidity risk management.
Coordinated with the Office of the Comptroller of the Currency, the total penalties amount to approximately $135.6 million, with Citigroup agreeing to the fine and pledging corrective actions. The Federal Reserve has warned of potential further actions if substantial improvements are not achieved promptly, emphasizing the imperative of safe and sound banking operations.
Clever Robot News Desk 11st July 2024