Citi plans to provide a comprehensive internal audit to banking regulators, aiming for submission by the first quarter of 2027, or maybe even earlier. The goal is to prompt these regulators to lift the consent orders that have governed the bank’s operations since 2020, as reported by Reuters on October 12, citing sources who chose to remain anonymous.
The bank is working diligently to ensure that this audit meets the standards necessary for prompt approval from both the Federal Reserve and the Office of the Comptroller of the Currency (OCC). This would allow Citi to transition from focusing on remediation efforts to pursuing growth. However, Citi has not set a specific timeline for this audit. A spokesperson for the bank mentioned that the regulators control the timing of the process.
“We will not speculate about when the consent orders might be lifted, as that decision lies solely with our regulators,” the spokesperson told Reuters.
The consent orders issued by the Fed and the OCC in 2020 require Citi to enhance its technology and procedures to better identify issues such as problematic transactions and risky trades. One notable incident that led to these measures involved Citi mistakenly transferring $900 million to the creditors of a company.
In July 2024, both the Fed and OCC fined Citi $136 million for not making enough progress on data management issues first identified in 2020. The OCC also required Citi to implement a quarterly process to ensure adequate resource allocation to meet its objectives.
By December 2025, the OCC lifted a specific amendment from the October 2020 consent order, stating that it was no longer necessary for the bank’s safety, soundness, and legal compliance.
Earlier this year, when reports surfaced about Citi potentially acquiring a major U.S. regional bank or brokerage, the bank dismissed those claims as “baseless speculation,” reiterating its focus on executing its strategy and completing its transformation.
According to the recent Reuters report, if the consent orders are indeed lifted, Citi’s stock could rise and more resources would become available. The bank reportedly invested $3.3 billion in its transformation just in 2025.
Citi’s wealth management division, which currently operates with the lowest return among its five business areas, along with its retail sector, might see benefits from increased scale, especially if it adds branches or acquires a wealth management firm. Both of these options would become more feasible once the consent orders are lifted, according to the report.
