UK financial authorities have imposed a fine exceeding £61.6 million on Citigroup for major lapses in its trading systems and controls. This penalty, one of the heftiest since the 2008-2009 financial crisis, underscores the critical importance of robust financial controls in the banking sector.
On Wednesday, the UK’s banking and financial regulators announced the substantial fine against the U.S. banking giant Citigroup. The hefty penalty, equivalent to $78.54 million, was levied due to serious deficiencies in the bank’s trading systems and internal controls. The penalties were slightly reduced after Citigroup agreed to rectify the identified issues.
The Prudential Regulation Authority (PRA) specifically fined Citigroup Global Markets Limited £33.88 million for failures in its trading systems and controls that occurred between April 1, 2018, and May 31, 2022. This fine was initially higher but was reduced by 30% following Citigroup’s commitment to address and resolve the shortcomings.
Similarly, the Financial Conduct Authority (FCA) imposed a fine of £27.76 million on Citigroup after conducting its investigation into related matters. This action highlights the coordinated effort by UK regulators to enforce stringent controls and ensure compliance within the financial sector.
This substantial fine serves as a stark reminder to financial institutions about the necessity of maintaining robust and effective trading systems and controls to prevent such breaches and maintain market integrity.