Citi Fined $15 Million By U.K. For Trading Surveillance Failings
Citigroup Inc. was fined $15 million by the UK financial regulator for failing to properly implement market abuse controls.
(Bloomberg) --
Citigroup Inc. was fined £12.6 million ($15 million) by the UK financial regulator for failing to properly implement market abuse controls.
Compliance teams at the US bank’s broker-dealer couldn’t effectively monitor trading activities for potential insider dealing and market manipulation, the Financial Conduct Authority said in a statement Friday. The FCA said Citigroup Global Markets’s trade surveillance systems were found wanting between November 2015 and January 2018.
Citigroup, home to one of the world’s biggest investment banks, is already under pressure to improve its controls. The Bank of England hit the New York-based lender with a record £44 million fine in 2019 for years of inaccurate reporting about its capital and liquidity levels, while U.S. regulators doled out a $400 million fine in 2020 for persistent problems with risk management.
Chief Executive Officer Jane Fraser is now overseeing a yearslong campaign to shore up internal systems and data programs that will end up costing it billions.
Citigroup agreed to resolve the case, qualifying for a 30% discount in the fine, the FCA said. “Citi is pleased to put this matter behind us,” a spokesperson said.
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