NEW YORK (Reuters) – Citigroup warned some employees about fraud and unethical practices and asked them to monitor work done by contractors to ensure accurate billing, according to a memo seen by Reuters on Friday. He said he is considering strengthening monitoring.
Citi has struggled to correct weaknesses in its governance and risk management. The company was fined $136 million by regulators in July for not making sufficient progress on regulatory penalties dating back to 2020.
“Citi has zero tolerance for fraudulent or unethical conduct by employees, non-employees or suppliers,” said an internal Citi memo seen by Reuters.
The memo states that “Citi is considering increasing its control over how work is sourced” to ensure suppliers meet Citi's needs and are compensated appropriately for the hours worked. .
The bank declined to comment, and the memo did not provide specific details about the reason for the sending.
The memo was sent by Scott Sigal, Citi's global head of procurement and third-party management, and Erica Federico, global head of non-employee staffing.
The lender also asked staff to report potential fraud or policy violations. He said any allegations of misuse of City resources for personal or professional gain would be investigated.
