Citi Group has been struggling with a string of compliance failures dating back as far as 2020.

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Citi Group has been struggling with a string of compliance failures dating back as far as 2020. The Office of the Comptroller of Currency (OCC) issued a cease and desist order along with a $400million fine for deficiencies in enterprise-wide risk management compliance, data governance, and internal controls. Citi was fined $62mn in May for a trading error and $136 million in June for inaccurate reporting of loans to regulators.

The latest fine came about through a lack of demonstratable action to resolve compliance risk and reporting processes. Resulting in the current COO having responsibility for the overhaul for data, required to satisfy regulators that the banks systems comply with regulation, removed. Passing in part to the banks CTO, the third executive in three years to oversea the task of improving the banks data governance.

The changes come at a time when the bank is fighting a lawsuit by a former employee, who claims the bank terminated her contract, when she refused to hide critical information from the OCC on Citi’s risk management and data governance controls.

One wonders the cost of regulatory compliance vs. fines. If correct Citi has paid at least $750 million in fines since 2020, for issues relating to compliance.

https://lnkd.in/e6xTvZEb

@Thaddeus Dziekanowski

Veritas GRC Office of the Comptroller of the Currency Citi

#complinance ‘regulation

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