The Federal Reserve Board of the United States has fined Citigroup $60.6 million for its continued failures in risk management and data quality practices. The enforcement action is a direct response to Citigroup's failure to address deficiencies found in the 2020 order.
In a recent examination, the Fed found that Citigroup's measures to strengthen data quality management and regulatory reporting were insufficient, and that the bank failed to effectively implement compensating controls despite submitting a resolution plan, resulting in compliance and risk management issues.
The penalty highlights Citigroup's failure to meet the requirements of the 2020 Cease and Desist Order, including significant deficiencies in key areas such as data governance, compliance risk management, capital planning, and liquidity risk management. The joint action of the Federal Reserve and the Office of the Comptroller of the Currency, as well as the total fine of up to $135.6 million, reflect the regulators' strict requirements for risk control of financial giants.
Citigroup has agreed to accept the fine and claims to be taking steps to correct the problems. The Fed warned that Citigroup may face further enforcement action if it fails to substantially improve its risk management and data quality.