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
CLA’s financial institution regulatory compliance team assists banks and credit unions nationwide in establishing regulatory compliance programs, conducting compliance testing, and training staff on regulations. Justin Robinson is a member of CLA’s regulatory compliance team and can be reached at justin.robinson@CLAconnect.com.
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