US investigates Citigroup's ties to sanctioned Russian oligarch, Bloomberg
Photo: Suleiman Kerimov (Russian media)
US government agencies are investigating Citigroup Inc. over its links to sanctioned Russian oligarch Suleiman Kerimov, Bloomberg reports.
The investigation led by the Department of Justice, the FBI, and the IRS focuses on Citigroup's involvement with Heritage Trust. This entity holds assets belonging to Suleiman Kerimov, said the person asked not to be identified discussing non-public information.
Kerimov is a Russian billionaire the US has previously stated profited from government corruption.
According to the source, the investigation is examining Citigroup's anti-money laundering policies and systems in place to prevent financial crimes.
Regulators have penalized Citigroup for shortcomings in its risk management and controls during the last few years. In July, the Federal Reserve announced the bank had made insufficient progress toward resolving a pair of consent orders it had received in 2020 and imposed a fine worth $136 million.
"Citi is committed to conducting all business with the highest consideration for compliance with all applicable laws and regulations. At the same time, we are actively ending nearly all of our institutional banking business in Russia, except for those operations necessary to fulfill remaining legal and regulatory obligations, while we proceed with the closing of our Russian consumer banking business," the company's statement reads.
These penalties once again highlighted the challenges facing CEO Jane Fraser in her efforts to rebuild the fourth-largest US bank by assets. Last month, CFO Mark Mason announced that Citi would increase its investment in regulatory reporting processes in the coming months.
Kerimov is listed at No. 293 on the Bloomberg Billionaires Index, with an estimated net worth of around $9.7 billion. Earlier, the US has seized properties owned by Kerimov and other Russian oligarchs.
