Citigroup fined $135M for failure to comply with Fed, OCC enforcements

investmentnews.com:

Citigroup shares fell 1.3% after hours Wednesday after it was handed a combined $135.6 million in financial penalties by the Federal Reserve Board and the Office of the Comptroller of the Currency for violating enforcement requirements.

In 2020, Citi was told by the two organizations to fix problems with its data quality management and risk management with the Fed Board issuing a Consent Order against Citigroup Inc. and the OCC taking similar action against Citibank.

Four years on and not enough has been done to remediate the problems identified in the enforcement actions, triggering the additional action.

“Citigroup has made insufficient progress remediating its problems with data quality management and failed to implement compensating controls to manage its ongoing risk. The Board continues to monitor Citigroup’s actions to comply with the 2020 action, which remains in effect,” said the Fed Board, which determined that a $60.6 million fine was appropriate for the violation.

Acting Comptroller of the Currency Michael J. Hsu said that Citibank must fully address the issues raised in 2020 in a “timely manner” and noted that the latest action is an amendment to the previous Consent Order, which remains in force.

“While the bank’s board and management have made meaningful progress overall, including taking necessary steps to simplify the bank, certain persistent weaknesses remain, in particular with regard to data,” he said. “[Wednesday’s] amendment requires the bank to refocus its efforts on taking necessary corrective actions and ensuring appropriate resources are allocated for this purpose.”

The OCC assessed that a civil penalty of $75 million should be paid as a result of the amendment.

In a statement, Citigroup CEO