Fed cites Citi for breaching money-laundering law

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Fed cites Citi for breaching money-laundering law
WASHINGTON (MarketWatch) - The Federal Reserve on Tuesday cited Citigroup Inc. for failing to comply with a federal law that requires banks to establish protections against money-laundering but didn't impose a fine. The Fed's action follows up on a similar order issued against Citigroup last year by two other bank regulators, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp., which cited it for "deficiencies" in its compliance with the Bank Secrecy Act, a law that requires banks to document suspicious transactions and set up systems to prohibit money laundering. The Fed said that Citigroup lacked effective systems of governance with respect to its Bank Secrecy Act and anti-money-laundering compliance programs. Citigroup has 60 days to submit a plan explaining steps the bank has taken to boost its compliance efforts.