Citigroup’s $81 trillion transaction error raises compliance concerns

• Citigroup mistakenly credited $81 trillion to a customer’s account in April 2024, instead of $280, due to an error detected 90 minutes later. The transaction was reversed hours later, with no financial harm incurred.
• The incident, classified as a “near miss,” highlighted Citi’s operational challenges, including 10 similar incidents involving $1 billion+ transactions in 2023.
• Citi continues to invest in compliance and technology to improve data governance and regulatory reporting, following regulatory fines totaling $536 million since 2020.

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Citigroup mistakenly credited $81 trillion to a customer’s account in April 2024 instead of $280. Two employees initially missed the error before a third detected it about 90 minutes after processing.

The bank reversed the transaction, which did not result in any funds leaving the bank, hours later, according to the Financial Times.

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What does this reveal about Citi’s operational issues?

The bank classified the incident as a “near miss,” meaning an error was made but was ultimately corrected before financial harm occurred. Citi disclosed the mistake to the Federal Reserve and the Office of the Comptroller of the Currency (OCC).

While the bank stated that its “detective controls” identified the issue between two ledger accounts, the error highlighted broader operational challenges Citi has been working to address.

Has Citi had similar incidents before?

Citi recorded 10 near misses involving transactions of $1 billion or more last year, down from 13 the previous year, according to an internal report.

The bank declined to comment on the report.

In recent years, Citi has faced regulatory scrutiny over its risk management and compliance practices.

In 2020, federal financial agencies fined the bank $400 million for failures in these areas, followed by an additional $136 million fine in 2023 for insufficient progress in addressing those deficiencies.

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What steps is Citi taking to improve compliance?

Citi Chief Financial Officer Mark Mason acknowledged the need for further investment in compliance and technology. He said that the bank has focused on enhancing data governance and regulatory reporting to avoid similar errors in the future.

The $81 trillion typo, while ultimately harmless, underscored ongoing concerns about Citi’s operational controls and regulatory oversight as the bank continues investing in strengthening its internal processes.