Report: US Government Investigating Citigroup's Anti-Money Laundering Policies

Core Viewpoint - U.S. government agencies are investigating Citigroup's anti-money laundering policies and its connections to a sanctioned Russian official, highlighting ongoing scrutiny in the financial sector regarding compliance and regulatory practices [1]. Group 1: Investigation and Compliance - The Department of Justice, FBI, and IRS are examining Citigroup's dealings with a trust linked to Russian billionaire Suleiman Abusaidovich Kerimov [1]. - Citigroup has stated its commitment to compliance with laws and regulations while winding down its institutional banking business in Russia, except for necessary operations to meet legal obligations [2]. - Citigroup's CEO emphasized the company's transformation efforts, including the closure of a longstanding consent order related to its anti-money laundering systems [2][3]. Group 2: Regulatory Actions and Changes - The Federal Reserve terminated a decade-long enforcement action against Citigroup concerning deficiencies in its anti-money laundering practices [3]. - The 2013 consent order required Citigroup to implement a firmwide compliance risk management program to address compliance risks [4]. - There is increasing regulatory scrutiny on anti-money laundering efforts, with potential changes in rules as regulators seek to enhance fraud defenses using advanced technologies [5].