A former Citi executive filed a lawsuit saying the bank fired her after she raised compliance concerns linked to a potential account for US President Donald Trump, the executive alleged in court papers cited by the Financial Times.
LAWSUIT ALLEGATIONS
The filing, as reported by the FT, said the executive identified what she viewed as shortcomings in the bank's risk-management processes and raised those issues internally before her dismissal. The lawsuit framed the termination as retaliatory, alleging that the employee faced adverse action after pressing the concerns.
The heavily redacted complaint, filed in Brooklyn federal court on 15 June under the pseudonym Jane Doe, alleges deficiencies in Citi's internal controls for risk management, anti-money laundering, reputational risk and data compliance, and says some concerns were raised as Citi considered opening a so-called numbered account, which the FT reported was for President Donald Trump. The former executive said she had escalated the concerns through the bank's internal channels prior to her exit. Citigroup denied the allegations, saying the lawsuit has "absolutely zero merit", and challenged in a court filing her request to proceed anonymously.
POLITICAL BACKDROP
The case comes amid heightened political scrutiny of banks' client relationships. The Trump administration has challenged what it views as politically motivated account closures, regulators have removed reputational risk from supervisory guidance, and Trump has separately sued JPMorgan Chase for $5 billion over the closure of his accounts.
Sources: FT Financials
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