In a stunning revelation, Citigroup inadvertently credited a customer’s account with a staggering $81 trillion last April, instead of the intended $280. This monumental error was initially overlooked by two employees before being detected 90 minutes later by a third. The transaction was reversed several hours after its execution and classified as a “near miss,” a term used for banking errors where incorrect amounts are processed but successfully recovered.
The incident highlights Citigroup’s ongoing operational challenges, including a series of similar errors. According to internal reports, the bank experienced 10 “near misses” involving transactions of $1 billion or more in 2023, down from 13 the previous year. This trend underscores the bank’s efforts to improve compliance and risk management, particularly after facing significant regulatory fines.
Citigroup has disclosed the incident to both the Federal Reserve and the Office of the Comptroller of the Currency. The bank emphasized that its “detective controls” quickly identified the inputting error and reversed the entry, ensuring no funds left the bank. Despite the lack of financial impact, the episode raises concerns about Citigroup’s operational controls and regulatory oversight.
In response to these challenges, Citigroup is investing heavily in compliance and technology to enhance data governance and regulatory reporting. The bank’s Chief Financial Officer, Mark Mason, has acknowledged the need for further investment in these areas to prevent similar errors in the future. This strategic move aims to bolster Citigroup’s internal processes and address long-standing operational issues that have drawn scrutiny from regulators.
