- Citigroup was fined £44 million, or $57 million, by the Bank of England’s Prudential Regulation Authority.
- The fine is for inaccurate regulatory reporting about the bank’s capital and liquidity levels from June 2014 to 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.
- The PRA said Citigroup agreed to resolve the matter and thus qualified for a 30% reduction in the total fine.
The Bank of England’s Prudential Regulation Authority fined Citigroup £44 million, or $57 million, for years of incorrectly reporting its capital and liquidity levels to regulators, the PRA said Tuesday.
It’s the largest fine to date from the Bank of England’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,” Sam Woods, a Bank of England deputy governor and CEO of the PRA, said in a statement.
The authority said that from June 2014 to December 2018, the Wall Street bank’s units in the UK submitted incomplete and inaccurate reports to the PRA because of internal failures in its compliance and governance divisions.
The incorrect reports “led to significant errors,” including “six substantive matters which had a material or potentially material impact on the returns,” the PRA said. Its investigation focused on three Citigroup divisions: Citigroup Global Markets Limited, Citibank NA’s London branch, and Citibank Europe’s UK branch.
These units heavily relied on employees in Budapest or Mumbai for the reporting, even though the regulatory teams based in London had final responsibility for the content of the reports, the PRA said.
In addition, the PRA said that 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’ve been £62.7 million but that Citi agreed to settle the issue for a 30% discount.