Askume, Sept 22 – Citigroup’s expansion plans in China have faced hurdles from U.S. regulators, with the Federal Reserve fining the bank over data management and risk controls, Bloomberg reported on Sunday .
The bank is facing delays in setting up an independent securities firm as it has yet to receive a letter of approval from the Federal Reserve needed by Chinese authorities to confirm its regulatory status, Bloomberg said.
Citigroup was ordered to address its data management issues internally after it was hit with a total of $136 million in fines in July, the report said. The fines also make it more difficult to comply with China’s licensing rules, the report said.
The New York-based bank is continuing discussions with China’s securities regulators about setting up the business and has no intention of withdrawing its application, Bloomberg reported, citing people familiar with the matter. It also said the situation is fluid and could change.
Citigroup declined to comment on the ongoing process of obtaining a license in China, saying it remained committed to supporting its clients in the country.
