Citigroup Strips COO Anand Selva of Data Compliance Responsibilities Following $136 Million Penalty

Key Developments After Citigroup's $136 Million Fine

Following the imposition of a $136 million fine by regulators, Citigroup has decided to strip Chief Operating Officer Anand Selva of his critical responsibilities related to compliance. This change comes as the bank seeks to address reporting failures that led to the hefty penalty this summer. Selva will now share responsibilities for the compliance overhaul with Tim Ryan, the newly appointed Chief Technology Officer, indicating a shift to expedite needed improvements.

Background of the Regulatory Fine

• Citigroup was fined for inaccurately reporting details of loans totaling tens of billions of dollars.
• Chief Executive Jane Fraser committed to enhancing data controls post-fine.
• Selva loses oversight of approximately 800 employees involved in compliance efforts.

Implications of Leadership Changes

This move is seen as a significant recognition within Citigroup that Selva’s responsibilities were too extensive. The decision to reallocate duties aims to sharpen the focus on compliance and strengthen the bank’s data management systems. Additionally, the change follows a series of compliance issues that have historically plagued the bank.

Future Outlook for Citigroup's Compliance Efforts

As part of Citigroup's ongoing restructuring, the bank will appoint a new top data officer, reflecting its commitment to resolving the data-related challenges it faces. Despite these changes, Selva will continue to lead in other capacities to enhance risk management strategies.