The US Federal Reserve and the Office of the Comptroller of the Currency received comprehensive proposals from Citigroup outlining its goal to improve risk management and internal controls.
The plans lay out the group's objectives to address a Federal Reserve regulation from two years ago that called attention to "longstanding deficiencies" in its internal controls, according to Reuters.
In 2020, the US Office of the Comptroller of the Currency (OCC) fined Citigroup $400 million (€400 million) due to identical issues.
According to sources who spoke to Reuters, the paper provides a multi-year plan to address issues by the end of 2027 or the beginning of 2028 and describes some of the precise measures the bank would take in the following years to strengthen its greatest risk sectors.
Plans show how the company intends to improve its internal governance, data quality, and risk management.
According to a study published last week, US authorities were dissatisfied with the advancements Citigroup had made in the two years following its reprimand for having subpar risk management systems.
According to the Wall Street Journal, Federal Reserve officials allegedly questioned Citigroup CEO Jane Fraser about the lender's intentions to strengthen its risk-management system.
It is believed that about 30,000 individuals, as well as outside experts who have been brought in, are responsible for working on its enhancements.
"We have taken decisive actions to simplify our firm," Citigroup said in a statement. "We will continue to act with urgency to modernise the bank for the digital age and strengthen our risk and control environment."
"We are completely committed to the sustainability of this effort and to executing at the level expected of us," they added.
Over the next few weeks, regulators are anticipated to respond to Citi's suggestions and decide whether or not the plans are enough or require revision.
By fLEXI tEAM