Anand Selva, Chief Operating Officer of US multinational bank Citigroup, has been relieved of his responsibility over its data compliance duties after the bank was fined $136m over risk management failures.
According to The Financial Times, Selva will no longer solely have oversight of Citi’s data compliance controls and will from now on share duties with Tim Ryan, a partner of PwC who joined Citi last June.
The move stems from a range of compliance failures the bank has incurred since 2020, most relating to risk management and data governance which highlights a series of regulatory troubles and a lawsuit lodged against the bank.
The recent $136m fine was placed upon Citi in June by the Federal Reserve and Office of the Comptroller of the Currency (OCC) after finding the bank had made “insufficient progress” with its data management compliance.
Back in 2020, Citi also had to contend with a much larger $400m penalty for similar issues, with regulators highlighting “ongoing deficiencies” in regards to internal controls and its risk management.
Whilst Citi had agreed to a plan to fix its data compliance issues, the Federal Reserve’s exam last year found that the bank had not made sufficient progress.
Fast forward to June 2024 and both regulators hit Citi with the $136m penalty, issuing a statement that revealed that “Citigroup violated the 2020 order through delays in completing milestones included in its approved plan”.
Not only will Citi have to contend with an overhaul of its data compliance controls, the bank is also currently contending with a lawsuit that was filed by a former employee.
Kathleen Martin filed the lawsuit to a New York District Federal Court claiming that Citi terminated her contract over allegedly refusing to provide regulators with false information, as well as instructing her to conceal “critical information” from regulators in regards to the bank’s data governance.
