Citibank Penalized $70 Million for BSA Violations

On January 4th the Office of the Controller of the Currency (OCC) imposed a $70 million penalty on Citibank for violating a 2012 Cease and Desist Order which identified Bank Secrecy Act (BSA) and anti-money laundering (AML) program violations. The 2012 Order found that Citibank failed to adopt and implement a BSA/AML compliance program. Citibank also failed to file timely Suspicious Activity Reports and did not adequately conduct customer due diligence and enhanced due diligence on certain accounts.  Finally Citibank’s independent BSA/AML audit function missed systemic deficiencies found by the OCC during the examination process. Since Citibank did not adequately address and correct these deficiencies from the 2012 Cease and Desist Order, the OCC imposed the large penalty.

 

https://www.occ.gov/static/enforcement-actions/ea2017-104.pdf

  • 218-790-1086

John Zasada is a principal with CLA and leads the firm’s financial institution regulatory compliance practice. He assists banks and credit unions nationwide in establishing regulatory compliance programs, conducting compliance testing, training staff on regulations, and performing website compliance assessments. In addition, John is a frequent speaker at industry conferences and state associations. Prior to joining CLA, he served as managing director at a top-10 accounting firm and as the compliance officer of a large financial institution, where he developed and implemented its first regulatory compliance program.

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