In April, Citigroup mistakenly credited a customer's account with $81 trillion instead of the intended $280, exposing existing operational issues.
The Erroneous Transfer and Its Correction
In April, Citigroup accidentally transferred $81 trillion into a customer's account instead of $280. The mistake was detected 90 minutes later and corrected within a few hours. The transaction was classified as a 'near miss,' a term used for operational errors that are corrected with no financial issues.
Citigroup's Operational Challenges
The incident highlighted Citigroup's ongoing operational challenges, including a series of similar errors. In 2023, the bank experienced 10 'near misses' involving transactions of $1 billion or more, down from 13 the previous year, reflecting efforts to improve compliance and risk management.
Company's Response Measures
Citigroup disclosed the incident to the Federal Reserve and the Office of the Comptroller of the Currency, emphasizing that its 'detective controls' quickly identified the error. Citigroup is investing heavily in compliance and technology to enhance data governance and regulatory reporting. CFO Mark Mason acknowledged the need for further investment in these areas to prevent similar errors.
The erroneous transfer incident underscored the need for strengthened operational controls at Citigroup, drawing scrutiny from regulators.
