U.S. authorities are investigating Citigroup's (C, Financial) connections with a sanctioned Russian official. Sources familiar with the matter revealed that the U.S. Department of Justice, the Federal Bureau of Investigation, and the Internal Revenue Service are focusing on Citigroup's work with Heritage Trust. This company holds assets belonging to Suleiman Abusaidovich Kerimov, a Russian billionaire previously accused by the U.S. of exploiting government corruption for profit.
The investigation is examining Citigroup's anti-money laundering policies and systems aimed at preventing financial crimes. In recent years, regulators have penalized Citigroup for deficiencies in risk management. In July, the Federal Reserve imposed a $136 million fine on the bank for inadequate progress in addressing two consent orders received in 2020.
A Citigroup spokesperson stated in an email that the bank is committed to conducting all businesses in compliance with applicable laws and regulations. The bank is actively winding down nearly all institutional banking operations in Russia, except those necessary to fulfill remaining legal and regulatory obligations, while continuing to close its consumer banking in the country.
