: Fed announces enforcement action against Citigroup

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The Federal Reserve on Wednesday announced it was taking an enforcement action against Citigroup Inc. demanding that the bank correct “several longstanding deficiencies.”

In a statement, the Fed announced a cease-and-desist order that requires Citigroup C, +0.96% to enhance its firm-wide risk management and internal controls.

“Among other things, the firm has not taken prompt and effective actions to correct practices previously identified by the Fed Board in the areas of compliance risk management, data quality management, and internal controls,” the central bank statement said.

The Fed’s action applies to the bank holding company. A separate action is being taken by the Office of the Comptroller of the Currency, which oversees Citibank, the firm’s national bank.

In 2013, Citigroup entered into an consent agreement with the Fed to clean up its anti-money-laundering compliance program.

Two years later, the firm entered into an order to strengthen in Citigroup’s compliance and control in foreign exchange activities.