Citigroup slammed with record $57 million fine for inaccurate reporting

ReutersA Citigroup office is seen at Canary Wharf in London.

  • Citigroup Inc. has been fined $US57 million, or 44 million pounds, by the Bank of England’s Prudential Regulation Authority.
  • The fine is for inaccurate regulatory reporting about the bank’s capital and liquidity levels between June 2014 and December 2018, the PRA said.
  • “Citi has fully remediated the past regulatory reporting issues identified by the PRA, and settled this matter at the earliest possible opportunity,” Citigroup told Markets Insider in a statement.
  • Citigroup agreed to resolve the matter and thus qualified for a 30% reduction in the total fine, the PRA said.
  • Read more on Business Insider.

The Bank of England has fined CitigroupInc. $US57 million, or 44 million pounds, for years of incorrectly reporting its capital and liquidity levels to regulators, the central bank’s Prudential Regulation Authority said Tuesday.

It’s the largest fine to date from the BoE’s banking supervisory arm, Bloomberg reported.

“Citi failed to deliver accurate returns and failed to meet the standards of governance and oversight of regulatory reporting which we expect of a systemically important bank,” said Sam Woods, BoE deputy governor and CEO of the PRA in a statement.

Between June 2014 and December 2018, the Wall Street bank’s units in the UK submitted incomplete and inaccurate reports to the PRA due to internal failures in its compliance and governance divisions, the authority said.

The incorrect reports from that time led to “significant errors,” including “six substantive matters which had a material or potentially material impact on the returns,” according to the PRA. The PRA’s investigation focused on three Citigroup divisions, including Citigroup Global Markets Limited, Citibank N.A. London branch, and Citibank Europe Plc UK branch.

These units heavily relied on employees in Budapest or Mumbai for the reporting, the PRA said, even though the regulatory teams based in London had final responsibility for the content of the reports.

In addition, the PRA said Citi failed to allocate adequate human resources to ensure CGML’s liquidity returns were complete and accurate, and that its oversight and governance fell “significantly below” the standards expected of a global bank. Still, the PRA acknowledged that Citi had surplus liquidity and met its capital requirements at all times.

“Citi has fully remediated the past regulatory reporting issues identified by the PRA, and settled this matter at the earliest possible opportunity,” Citigroup told Markets Insider in a statement.

The PRA said that the fine would have been 62.7 million pounds, but Citi agreed to settle the issue for a 30% discount.

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