Citibank ordered to pay $400M penalty over its “unsafe or unsound banking practices”

gulators said the amount of the penalty was significant due to Citibank’s  “long-standing  deficiencies.” The bank allegedly failed to establish effective risk management, data governance programs, and internal controls.”

Due to its failure, Citibank violated the 12 CFR Part 30, Appendix D, “OCC Guidelines Establishing Heightened Standards for Certain Large Insured National Banks, Insured Federal Savings Associations, and Insured Federal Branches.”

According to the OCC, Citibank agreed to the Consent Order requiring its payment of the $400 million civil money penalty to avoid additional costs associated with administrative and judicial proceedings ng related to the matter.

Also, the OCC issued a cease and desist order requiring Citibank to improve its risk management, data governance, and internal controls. The order is also requiring the bank to seek the agency’s authority to implement additional business restrictions or changes in its senior management and board if it fails to comply with the order.

Citibank has significant projects to address its deficiencies

In a statement, Citibank said it is disappointed because it failed to meet the expectations of the OCC and the Federal Reserve. The bank said it is committed to thoroughly resolve the problems specified in the regulators’ orders.