Federal banking regulators will fine Citibank $400 million for shortcomings in its risk management and other internal controls processes.
The Office of the Comptroller of the Currency, an agency within the Treasury Department, cited “serious and longstanding deficiencies and unsafe or unsound practices” in Citibank’s risk management and data governance.
“The OCC took these actions based on the bank’s longstanding failure to establish effective risk management and data governance programs and internal controls,” the agency said in a release Wednesday.
The penalty comes in conjunction with a separate but related enforcement action by the Federal Reserve Board against Citibank’s parent company, Citigroup (C). The board issued a cease and desist order requiring Citigroup to improve its risk management practices, including in the areas of compliance risk management, data quality management and internal controls.
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