Citi Cautions Employees Regarding Misconduct Among Staff and Contractors, According to Memo from Reuters

NEW YORK (Reuters) – Citigroup has alerted some employees regarding issues of fraud and unethical behavior, indicating a potential increase in oversight of contractor work to ensure accurate billing, according to an internal memo obtained by Reuters on Friday.

The bank has faced challenges in addressing weaknesses in its control and risk management systems. In July, it was penalized with a $136 million fine by regulators for making inadequate strides in rectifying previous regulatory violations dating back to 2020.

"Citi has zero tolerance for fraudulent and unethical behavior from our employees, non-employees, and suppliers," the memo stated.

The communication emphasized that Citi is exploring ways to enhance its controls over how work is sourced, ensuring that suppliers’ services align with the bank’s requirements and that they receive proper compensation for their labor.

Citi chose not to comment further, and the memo did not provide specific reasons for its issuance.

The memo was issued by Scott Sigal, Citi’s global head of procurement and third-party management, alongside Erika Federico, the global head of non-employee staffing.

Additionally, the bank urged its staff to report any instances of potential misconduct or violations of company policies, asserting that any suspected misuse of Citi resources for personal or professional advantage would be thoroughly investigated.