US banking giant Citigroup is facing a hefty fine of $135.6 million from regulators for failing to address longstanding issues with the bank’s risk management, compliance, data handling, and internal controls. The Federal Reserve and the Office of the Comptroller of the Currency (OCC) have imposed the collective fine after Citigroup failed to fix deficiencies highlighted in two enforcement actions from Q4 of 2020.
Despite agreeing to undergo remediation efforts to overhaul its data governance and internal control programs, regulators found that Citigroup has not made sufficient progress in addressing their concerns. The Fed warns that additional penalties and escalated formal actions will be taken if Citigroup does not correct its ongoing violations.
Since 2000, Citigroup has paid over $26.945 billion in fines to resolve various enforcement actions, including securities abuses, banking violations, and investor protection violations. The bank must now refocus its efforts on addressing its deficiencies and ensuring appropriate resources are allocated for this purpose.
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