Citi to pay £44 million for regulatory reporting governance and controls weaknesses
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The UK Prudential Regulation Authority (PRA) has imposed a combined fine of £43.9 million on Citigroup Global Markets Limited, Citibank N.A. London branch and Citibank Europe Plc UK branch (CEP UK) (together, Citi).
The fine was over Citi’s failings in relation to their internal controls and governance arrangements underpinning compliance with PRA regulatory reporting requirements.
While Citi remained in surplus to its liquidity and capital requirements at all times, the failings persisted over a significant length of time and were serious and widespread in nature.
In particular, Citi
- failed to ensure that systems and controls supporting its UK regulatory reporting framework were designed, implemented and operating effectively;
- failed to allocate adequate human resources to ensure that CGML’s liquidity returns were complete and accurate; and
- approach to technical interpretations of reporting requirements was insufficiently robust given the complexity of those decisions and the impact they could have on the accuracy of the returns.
The weaknesses led to Citi failing to submit complete and accurate regulatory returns to the PRA.
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