Citibank has been hit with a C&D for AML/BSA deficiencies.

http://www.occ.gov/news-issuances/news-releases/2012/nr-occ-2012-57a.pdf

What would we do without you Retread! Thank you.

Ouch - this is going to be expensive:

Within 30 days of this Order, the Bank shall retain one or more independent consultants acceptable to the Examiner-in-Charge to supervise and certify an independent review of account and transaction activity (“look-back”) covering areas to be specified in writing by the Examiner-in-Charge.

And

Based upon the results of the look-back, the OCC, at its sole discretion, may expand the scope of the independent review or require a longer look-back period.

Left to the descretion of the EIC is never a good thing.....

It's also kind of telling that they don't trust management to hire someone they think is acceptable.

Done a couple of these, pre-approval of the party is a pretty standard requirement.

Two paragraphs (among many) caught my eye:

The bank turned itself in on some issues: The Bank self-reported to the OCC that from 2006 through 2010, the Bank failed to adequately monitor its remote deposit capture/international cash letter instrument processing in connection with foreign correspondent banking;

The action plan must include compensation of staff (you get what you pay for, advice many banks could take): The Bank shall ensure that it has sufficient processes, personnel, and control systems to implement and adhere to this Order. The BSA/AML Action Plan must specify in detail budget outlays and staffing, including aggregated staff compensation information in a format acceptable to the Examiner-in-Charge, that are necessary to achieve and maintain full compliance with Articles IV through XI of this Order.

Here is Citibank's response.

http://www.marketwatch.com/story/statement-on-occ-consent-order-2012-04-05

This can't be good PR!

I just saw this. Wow.

Is any one really surprised by these any more? I don't even bat an eye until the CMP is announced.

Unless it is your bank of course

Lol.

I'm not surprised. The pace at which Citibank gobbled up other banks for a few years was astonishing. I had a friend that worked at a bank that was taken over by Citi and she described the nightmare of having to access up to 5 different processing systems when a customer would call because the bank had not fully integrated a number of the banks after acquisition.

Unfortunately, the priority was not about "cleaning up" the backroom but pushing "efficiency" (aka laying off people) and meeting market expectations on profitability. The average employee simply had to flounder about as best they could while upper management went after more acquisitions. She was actually grateful when she got her "pink slip".

It was only a matter of time before this management style tripped them up.

I had seven different company names on my paycheck with this company from buying out other companies and taking their names. Its about time.