The Office of the Comptroller of the Currency imposed a civil money penalty of $75 million against Citibank N.A. on 10 July 2024, citing persistent deficiencies in the bank's risk management framework and internal controls. The OCC also amended its October 2020 cease-and-desist order to require Citibank to remediate the identified shortcomings, while the Federal Reserve separately fined parent Citigroup $60.6 million.
The action follows a consent order issued against Citibank in 2020, which required the bank to undertake comprehensive remediation of failures in data quality management, risk management, and internal controls.
A FOLLOW-ON TO THE 2020 CONSENT ORDER
The 2020 consent order targeted weaknesses in Citibank's enterprise-wide risk management infrastructure.
The OCC's press release, published on 10 July 2024, said the action reflected the bank's failure to meet remediation milestones and make sufficient and sustainable progress towards compliance with the 2020 order. The bank was simultaneously directed to implement remediation steps, with the OCC retaining supervisory oversight to monitor compliance. The nature and timeline of those required remediation actions were set out in the accompanying order.
CITIBANK'S TRANSFORMATION PROGRAMME
Citibank has been publicly committed to a multi-year transformation programme under the stewardship of Chief Executive Jane Fraser, who took over in 2021 with a stated mandate to simplify the bank's structure and strengthen its risk and control environment.
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