Citi fined for offshore activity

Citigroup is to receive a $600,000 (£378,500) fine over derivatives transactions which helped foreign clients avoid paying taxes on dividends. The move by the Financial Industry Regulatory Authority is part of US authorities’ tougher stance on offshore tax activity. The fine is to be levied against Citigroup Global Markets, and is partly related to the bank’s failure to control trading on “total return swaps”.