Citi warns some employees about misconduct by staff, contractors, memo says

Published On Sep 27, 2024, 3:28 PM

Citigroup has warned its employees about misconduct involving fraud and unethical behavior, particularly concerning the work of contractors. This follows their ongoing struggles with risk management and compliance, highlighted by a fine of $136 million by regulators for not making sufficient regulatory progress. The memo emphasizes Citi's zero tolerance for such behaviors and indicates steps to enhance controls over sourcing work and ensuring correct payment practices. Employees are encouraged to report any misconduct.

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Given Citi's ongoing issues with compliance and risk management, alongside the recent warning memo about misconduct, investor confidence could be negatively impacted. The company appears to be in a phase of tightening controls, which may hinder operational efficiency in the short term.

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Citi warns some employees about misconduct by staff, contractors, memo says

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