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Citigroup attributed a client’s account with $ 81tn when he meant only $ 280, a mistake that could interfere with the bank’s attempt to convince the regulators that he had solved many years of operational problems.
The wrong interior transfer, which took place last April and previously not reported, missed the payment employee and another official assigned to check the transaction before being approved to be processed at the beginning of the business of the next day.
The third employee revealed a problem with the bank balance, capturing the payment 90 minutes after it was published. The payment was revealed several hours later, according to an internal display of events seen by the Financial Times and two people to get acquainted with the event.
No means Citiwho discovered “near the miss” to the federal reserves and office of the currency supervisor, according to another person with knowledge of the matter.
The bank said that his “detective controls immediately identified the entry error between two accounts of Citi Ledger and revealed the entry” and that these mechanisms “would also stop any means leaving the bank.”
He added: “Although there was no effect on the bank or our client, the episode emphasizes our constant effort to continue removing manual processes and automation of controls.”
Total 10 near misses – incidents when a bank He is educated by the wrong amount, but ultimately it is able to repay funds – from $ 1 billion or more happened on Citi last year, according to an internal report seen by FT. The character fell slightly compared to the 13th previous year. Citi refused to comment on this broader set of events.
Near the missing should not be reported to regulators, which means that there are no comprehensive public data on how many incidents happen in the sector. Several former regulators and banks managers have said that there are more than $ 1 billion unusual in the US Bank industry.
The series close to the misses on Citi emphasizes that Bank on Wall Street is fighting for repairing its operational troubles nearly five years after it wrongly sent $ 900 million to creditors who participated in the disputed battle of the Revlon Cosmetic Group.
Citi’s wrong payment Revlon has led to the release of the then executive director Michael Corbat, great fines and imposing a regulatory consent order demanding that they solve problems.
Jane Fraser, who took the post of Citi’s Corbat Executive Director in 2021, described the repair of Citi’s regulatory issues as her “main priority”. However, the group was fined $ 136 million last year for failure in correcting risk control and data management.
In April, Cita Citi 81tn nearby missed entry errors and safety system with a cumbersome user interface, according to people who are familiar with the incident. In mid -March, four transactions in the amount of $ 280 intended for the Escrow buyer in Brazil have blocked a screen that captures payments that are potential violations of sanction.
The payment was quickly cleaned, but no matter what, the rest was stuck in the bank system and could not be completed normally.
Citi’s technological team ordered an employee of payment to manually enter transactions into a rarely used security screen. One of them was that the amount of the amount was previously filled with 15 zero, which the person who enters the transaction needed to delete, something that did not happen.
