Citigroup Promotes Anand Selva to Share Compliance Responsibility After $136M Fine

Key Takeaways

* Citigroup promotes COO Anand Selva to share compliance oversight following $136 million fine. * The move reflects a growing trend of banks assigning more responsibility to senior executives for compliance failures. * Selva will work closely with Citigroup's chief compliance officer to strengthen the bank's compliance program.

Citigroup's Response to Compliance Failure

On January 20, 2023, the Office of the Comptroller of the Currency ("OCC") and the Federal Reserve Board ("Fed") jointly announced a $136 million civil penalty against Citigroup for "unsafe and unsound banking practices" related to its risk management and compliance programs. In response to the fine, Citigroup has announced that it will promote Anand Selva, currently the bank's chief operating officer (COO), to share compliance responsibility with Citigroup's chief compliance officer (CCO). Selva will now report directly to Citigroup's CEO and will have oversight of the bank's compliance program, including its risk management, anti-money laundering, and sanctions compliance functions. This move reflects a growing trend of banks assigning more responsibility to senior executives for compliance failures. In recent years, there have been a number of high-profile cases of banks paying large fines for compliance violations. As a result, regulators are putting more pressure on banks to implement strong compliance programs and to hold senior executives accountable for compliance failures.

Selva's Role in Compliance

Selva has been with Citigroup for over 20 years and has held a number of senior roles in the bank's risk management and compliance functions. He is widely respected within the banking industry for his expertise in compliance and risk management. In his new role, Selva will work closely with Citigroup's CCO to strengthen the bank's compliance program. He will be responsible for overseeing the bank's risk management, anti-money laundering, and sanctions compliance functions. Selva will also work with Citigroup's business units to ensure that they are meeting their compliance obligations.

Conclusion

Citigroup's decision to promote Selva to share compliance responsibility is a significant step in the bank's efforts to strengthen its compliance program. Selva is a highly respected executive with a proven track record in compliance and risk management. His appointment to this new role sends a clear message that Citigroup is committed to improving its compliance culture and to meeting its regulatory obligations.