Citigroup (C) received another slap on its wrists for lax money-laundering controls on Tuesday as the Federal Reserve became the latest regulator to order the global banking giant to improve its oversight of anti-money laundering compliance.
The enforcement action comes after British banking giant HSBC (HBC) was slapped with a massive $1.92 billion penalty by U.S. regulators to settle charges it gave drug lords, terrorists and other shady characters access to the banking system.
The consent order from the Fed cited 2012 actions by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. that knocked Citi for gaps in the bank’s money-laundering standards.
The Fed order represents an enforcement action against the bank-holding company of Citigroup, whereas the OCC order targeted the lender’s primary U.S. depository institution and the FDIC action hit its Banamex subsidiary.
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Link to the consent order by Federal reserve: click here