Feds fine Citigroup $400 million over faulty risk management

Citigroup has agreed to pay a $400 million fine imposed by U.S. regulators for failing to shore up the bank’s operations

NEW YORK — Citigroup has agreed to pay a $400 million fine imposed by U.S. regulators for failing to shore up the bank’s operations.

The Office of the Comptroller of the Currency said Wednesday that the civil penalty is in response to shortcomings in the New York bank’s risk management, internal controls and data governance programs.

The move follows a settlement agreement between Citigroup and the Federal Reserve’s board of governors that calls for the bank to address “significant ongoing deficiencies” in how it has responded to prior orders for it to fix its bank management protocols, including its anti-money laundering compliance program.

Citigroup issued a statement saying it is committed to addressing regulators’ complaints and is working on ways to strengthen its internal controls, infrastructure and governance.