The Office of the Comptroller of the Currency (OCC) has recently issued an amendment to its October 7, 2020, Cease and Desist Order against Citibank, N.A, Sioux Falls, South Dakota, related “to deficiencies in enterprise-wide risk management, compliance risk management, data governance, and internal controls (2020 Order).”
The amendment is based on “the bank’s failure to meet remediation milestones and make sufficient and sustainable progress towards compliance with the 2020 Order.”
It was issued to ensure Citibank prioritizes “the remediation work, including through the allocation of sufficient resources.”
The amendment supplements but does “not replace the 2020 Order, which remains in full force and effect.”
Acting Comptroller of the Currency Michael J. Hsu said:
“Citibank must see through its transformation and fully address in a timely manner its longstanding deficiencies. 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. Today’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 also assessed a $75 million civil money penalty “against Citibank based on the bank’s violations of the 2020 Order and lack of processes to monitor the impact of data quality concerns on regulatory reporting.”
The Federal Reserve Board took “a separate but related action against Citigroup, the bank’s holding company.”
The OCC penalty will be “paid to the U.S. Treasury.”
The OCC charters, regulates, and supervises “all national banks and federal savings associations as well as federal branches and agencies of foreign banks.”
The OCC is an independent bureau of the U.S. Department of the Treasury.
To ensure that national banks and federal savings associations “operate in a safe and sound manner, provide fair access to financial services, treat customers fairly, and comply with applicable laws and regulations.”
