The Office of the Comptroller of the Currency (OCC) issued an amendment to its October 7, 2020 cease and desist order against Citibank, NA, Sioux Falls, South Dakota, regarding deficiencies in enterprise-wide risk management, compliance risk management, data governance and internal controls.
The amendment is based on the bank’s failure to meet remedial milestones and make sufficient and sustainable progress toward compliance with the 2020 Order. It was issued to ensure that Citibank prioritizes remedial work, including through the provision of adequate resources.
The amendment supplements, but does not supersede, the 2020 Order, which remains in full force and effect.
“Citibank needs to see its transformation and fully address its long-standing deficiencies in a timely manner,” said Deputy Comptroller of the Currency Michael J. Hsu. “While the bank’s board and management have made significant progress overall, including taking the necessary steps to simplify the bank, there remain some persistent weaknesses, particularly around data. Today’s amendment requires the bank to refocus its efforts on taking the necessary corrective action and ensuring that adequate resources are available to do so.”
The OCC also assessed a $75 million civil money penalty against Citibank based on the bank’s violations of the 2020 order and its lack of processes to monitor the impact of data quality concerns on regulatory reports.
The Federal Reserve Board took a separate but related action against Citigroup, the bank’s holding company.
The OCC fine will be paid to the US Treasury.