Britain’s sanctions regulator is imposing a multimillion-pound penalty on Citibank’s London branch after the bank processed payments that breached Russia sanctions rules.
The Office of Financial Sanctions Implementation (OFSI) says it levied a $6.39 million fine on Citibank N.A. (CBNA) London Branch after the bank processed 970 payments totaling £19.7 million that breached Russia sanctions rules.
The majority of the transactions occurred between February and November 2022 and involved accounts tied to Russian shipping firm PJSC Sovcomflot and financial institutions such as Alfa-Bank, PJSC Gazprombank and Credit Bank of Moscow.
The regulator determined there was no intent to breach sanctions yet described the errors as material and significant, spanning multiple business areas after the rapid rollout of new restrictions.
The bank self-reported most of the issues and cooperated with investigators.
The regulator noted the lack of intent but highlighted the scale of the problems.
“OFSI does not consider there to have been any intent by CBNA London to breach sanctions. However, the errors and failings referred to above were, in aggregate, material and significant and they occurred across a wide range of business areas and systems within the bank.”
A Citi spokesperson welcomed the case’s conclusion.
“We remain committed to working closely with sanctions authorities and supporting our clients through a strong and effective control environment.”
The firm takes sanctions compliance seriously and remains committed to working closely with authorities while investing in its control framework.
This post Citibank Slapped With a $6,391,119 Fine Over Payments That Breached Sanctions on Russia may be modified as updates unfold.
Please note, this site provides content for entertainment purposes only and does not offer financial advice. Read more here
