Citigroup, Inc. C has received notable regulatory relief after the Office of the Comptroller of the Currency (OCC) removed the July 2024 amendment to the bank’s 2020 consent order. This original consent order was focused on longstanding deficiencies in risk management, data governance, internal controls and compliance. The 2024 amendment required Citigroup to submit a formal resource review process to prove it had enough staffing, systems and governance in place to fix long-standing control issues.
The OCC said the amendment was removed because it was no longer needed for the bank's safety, soundness or compliance with laws and regulations, signaling tangible progress in the areas the amendment targeted. While the broader 2020 consent order remains in place, the removal of the amendment eliminates an incremental reporting and governance burden that had consumed management attention and operational resources. With this requirement lifted, Citigroup can advance its transformation plan without the extra regulatory procedure, allowing management to remain focused on strengthening internal controls, improving data quality and completing key system upgrades.
The regulatory easing aligns with Citigroup’s broader strategy to modernize its technology and control data. The firm has outlined plans to reduce reliance on external IT contractors while expanding internal technology headcount, strengthening in-house governance and execution capabilities. At the same time, it continues to invest in automation across booking, trading and risk reporting, reducing manual processes that historically contributed to control weaknesses.
Reinforcing this momentum, a Reuters article published on MSN reported that the Federal Reserve has closed long-standing supervisory notices related to Citigroup’s risk management and data governance shortcomings. This milestone removes a significant overhang that previously constrained strategic flexibility and followed hundreds of millions of dollars in regulatory penalties.
Taken together, these actions signal growing regulatory confidence in C’s ability to execute its remediation and transformation plans. With regulatory easing, the company is better positioned to accelerate its growth and efficiency initiatives. Management emphasized that transformation remains the top priority, noting that Citigroup continues to commit the necessary resources to modernize its technology and strengthen its risk and control environment. With most programs now at or near the target state, the bank is beginning to realize the benefits of more standardized, automated, and digitized controls.
Litigations Faced by Other Finance Firms
In December 2025, a Bloomberg article published on Reuters reported that HSBC Holdings PLC HSBC was expected to pay about $300 million to settle allegations related to the French “Cum-Cum” tax scandal. The settlement would close a criminal probe into HSBC’s alleged dividend-arbitrage trades and resolve related civil tax claims, without an admission of guilt.
Authorities estimate the disputed transactions deprived the French government of approximately €4.5 billion in tax revenues. HSBC’s resolution mirrors prior actions taken by Crédit Agricole and aligns with the bank’s provisions recorded earlier in 2025, reflecting its effort to address legacy compliance matters and mitigate potential operational risks.
In September 2025, UBS Group AG UBS agreed to settle a long-running French tax case concerning its cross-border business activities between 2004 and 2012. The bank will pay €730 million ($862.7 million) in fines and €105 million ($124.1 million) in civil damages to the French state.
The settlement follows years of appeals after a 2019 trial court found UBS guilty of illicit client solicitation and laundering the proceeds of tax fraud. UBS contested the ruling, citing insufficient evidence and jurisdictional issues. The resolution reflects UBS’ strategy to address legacy matters while minimizing ongoing operational and financial risks.
C's Zacks Rank & Price Performance
Shares of Citigroup have gained 44.7% in the past six months compared with the industry’s rise of 21.7%.
Image Source: Zacks Investment Research
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
