Citigroup hit by US regulator on bank secrecy

Monday, 9 April 2012 00:00 -     - {{hitsCtrl.values.hits}}

  • Citi accused of not complying with money laundering laws
  • Citi agrees to take steps to improve compliance
  • Citi will not pay penalty as part of agreement with OCC

WASHINGTON (Reuters): Citigroup Inc has agreed to take steps to clean up its compliance with bank secrecy and money laundering laws as part of an agreement with the Office of the Comptroller of the Currency. The OCC, a US bank regulator, said on Thursday that Citigroup’s Citibank had violated requirements that it maintain an adequate compliance program and file reports on suspicious activity.

Citibank will not pay a monetary penalty as part of the agreement, the OCC said.

In a statement, Citigroup said that even before the agreement with the regulator, the bank had been taking steps to improve compliance with bank secrecy and money laundering laws.

“Many of the issues highlighted in the OCC’s Order have already been remediated or are in the process of being remediated,” the bank said. “Furthermore, we are developing a plan to address the remaining OCC requirements.”

In a consent order entered into by the regulator and the bank, the OCC said that among the problems it found were that Citibank had trouble tracking “high risk” customers’ interactions with different parts of the bank.

The regulator also said Citibank was not doing enough to examine the risks posed by international personal banking customers.