Penalties of more than $135 million have been levied against the nation’s fourth largest bank for deficiencies in risk management and for failing to follow previous enforcement actions, two federal banking agencies said late Wednesday.
Citibank, N.A, and Citigroup, both of Sioux Falls, S.D., were fined $75 million by the Office of the Comptroller of the Currency (OCC) and $60.6 million by the Federal Reserve, the agencies announced in separate releases.
The banking company held nearly $1.7 trillion in assets as of March 31, according to Federal Reserve figures.
The OCC said its civil money penalty (CMP) was an amendment to a 2020 cease-and-desist order related to deficiencies in enterprise-wide risk management, compliance risk management, data governance, and internal controls (2020 Order).
“The amendment is based on the bank’s failure to meet remediation milestones and make sufficient and sustainable progress towards compliance with the 2020 Order,” the agency said. “It was issued to ensure Citibank prioritizes the remediation work, including through the allocation of sufficient resources.”
In a statement, Acting Comptroller Michael Hsu said certain persistent weaknesses remain, especially with 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,” Hsu said.
The amendment supplements but does not replace the 2020 order, the OCC said, adding that directive remains in full force and effect.
The Fed said its $60.6 million penalty was imposed after “insufficient progress remediating its problems with data quality management and failed to implement compensating controls to manage its ongoing risk.”
The Fed said it continues to monitor Citigroup’s actions to comply with its own 2020 action, which it said remains in effect.
OCC Amends Enforcement Action Against Citibank, Assesses $75 Million Civil Money Penalty