Citigroup recently encountered an operational mishap involving an $81 trillion ‘inputting error,’ although no funds were actually transferred out of the bank. This incident follows a series of operational missteps that have attracted regulatory attention. In 2020, Citi mistakenly sent $900 million to Revlon creditors due to human error and outdated systems. A spokesperson for Citi confirmed the latest issue as an ‘inputting error’ but emphasized the bank’s improved operational controls since no money left its accounts. The error was promptly detected and reversed between two internal ledger accounts, with preventative measures ensuring no financial impact on the bank or its client. This event highlights the challenges Citi faces in upgrading its technology and compliance frameworks under CEO Jane Fraser’s multiyear ‘Transformation’ initiative. Despite dedicating billions and employing 12,000 staff on this project, Citi has faced fines totaling $400 million from U.S. regulators over data management and risk controls. Additional penalties include $135.6 million in July following the $81 trillion error and approximately $79 million from British regulators for a 2022 incident. These issues add pressure on Fraser, who assumed leadership in March 2021, to demonstrate progress in overhauling the bank’s systems. — news from Business Insider
