Citigroup Faces Scrutiny Over Repeated Violations of Fed's Regulation W

Internal documents reveal ongoing compliance issues and liquidity reporting errors at the banking giant.

Citigroup repeatedly breached Federal Reserve rules limiting intercompany transactions, leading to liquidity reporting inaccuracies.
The violations were part of broader regulatory concerns about Citi's risk management and internal controls.
Citi has faced $136 million in fines for insufficient progress on compliance, adding to previous penalties.
The bank's internal documents highlight weaknesses in identifying and preventing future Regulation W violations.
Regulators have been scrutinizing Citi's practices since 2020, affecting the bank's compliance and risk management efforts.