OCC Reduces Regulatory Mandate Covering Citi's Risk Management Systems

Core Viewpoint - The Office of the Comptroller of the Currency (OCC) has terminated a July 2024 amendment to a consent order from October 2020 regarding Citi's risk management deficiencies, indicating that the bank has made sufficient progress in compliance [1][3]. Group 1: Regulatory Actions - The OCC's amendment required Citi to implement a quarterly process to allocate resources for meeting milestones in the 2020 consent order [2]. - The OCC stated that the bank had previously failed to make "sufficient and sustainable progress" toward compliance with the consent order [2]. - The termination of the amendment suggests that the OCC believes Citi's safety, soundness, and compliance with laws no longer necessitate the amendment's existence [3]. Group 2: Citi's Response and Progress - Citi has prioritized its transformation efforts, dedicating resources to modernize systems and strengthen its risk and control environment [3]. - The bank reported that most of its programs are at or nearly at target state, leading to benefits from improved, standardized, automated, and digitized controls [3]. - In response to the October 2020 consent order, Citi expressed disappointment in falling short of regulatory expectations and committed to addressing identified issues [5]. Group 3: Historical Context - The October 2020 consent order criticized Citi for failures in data management, regulatory reporting, and capital planning, highlighting significant ongoing deficiencies in its risk management systems [4]. - In July 2024, Citi was fined $136 million for not making sufficient progress in addressing data management issues identified in 2020 [5]. - A major organizational restructuring was initiated by Citi in September 2023, with the CEO emphasizing the bank's potential for improvement [6].