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Citi Readies Audit to Seek End of Federal Oversight and Speed Growth

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Citi Readies Audit to Seek End of Federal Oversight and Speed Growth

Citi aims to submit an internal audit to banking regulators by the first quarter of 2027, if not earlier, in hopes that the regulators will lift the consent orders the bank has been operating under since 2020, Reuters reported Monday (Oct. 12), citing unnamed sources.

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Citi is working to deliver an audit that is comprehensive enough that it will not encounter delays in being approved by the Federal Reserve and the Office of the Comptroller of the Currency (OCC), so the bank can shift its focus from remediation to growth, according to the report.

Citi has never stated a timeline for this effort, and a Citi spokesperson said in the report that the timing is in the hands of regulators.

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“As we have said consistently, we will not speculate about the lifting of the consent orders because that remains solely at our regulators’ discretion,” the spokesperson told Reuters.

The consent orders imposed by the Fed and the OCC in 2020 demand that Citi improve technology and procedures in order to better detect mistakes such as problematic transactions and risky trades. When imposing the consent orders, the regulators cited a case in which Citi accidentally sent $900 million to a company’s creditors.

In July 2024, the Fed and the OCC fined Citi $136 million, saying the bank had failed to make sufficient progress in addressing data management issues identified in 2020.


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