FCC Flash

On November 24, 2023, the Reserve Bank of India (RBI) imposed a penalty of USD 0.59 million on Citibank N.A. India for contravening the provisions of the Banking Regulation Act, 1949, and for non-compliance with the KYC Direction on Managing Risks and Code of Conduct in the Outsourcing of Financial Services by banks.

To read in detail, click here https://www.fcctimes.com/2023/11/24/rbi-imposes-%e2%82%b95-00-crore-penalty-on-citibank-n-a-for-regulatory-violations-and-non-compliance/?utm_source=RZOLUTWebsite&utm_medium=FCCFlash28Nov

Citibank’s Inspection for Supervisory Evaluation (ISE 2021) revealed several instances of non-compliance by the bank, including:

  • Violation of KYC directives and the Code of Conduct in outsourcing financial services.
  • Outsourcing of monitoring and disposal/closure of AML alerts to a Group company.
  • Delay in crediting the Depositor Education and Awareness Fund.
  • Payment of remuneration in the form of commission to certain staff members.