THE FEDERAL Reserve has ordered Citigroup to better police for the risk of money laundering, part of a broad US regulatory crackdown on the potential for illicit money flows.
The Fed told Citigroup’s board to submit a plan within 60 days to improve its oversight of companywide anti-money laundering compliance, according to a consent order dated 21 March, but only made public yesterday.
The order expands upon similar directives in 2012.
The board’s plan should include funding personnel and resources based on the risks of different units – policies that instil a “proactive approach” to identifying and managing money-laundering risks – and measures to ensure employees adhere to those compliance policies, the Fed said.
City A.M. Reporter