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Penalty

Central Bank fines Citibank €550,000 for inaccurate liquidity reporting

It is the fourth settlement reached by the Central Bank over liquidity requirement breaches over the past four years.

CITIBANK IS TO pay a monetary penalty of €550,000 to the Central Bank for failing to ensure the accuracy of its reporting.

The settlement was reached after the regulator found the financial institution to be in breach of five rules related to liquidity reporting between January 2009 and July 2012.

The bank was found to have failed to apply haircuts (discounts on cash-flows) to retail and corporate deposits to reflect the perceived risk associated with holding such deposits before including them in liquidity returns.

Director of Enforcement Derville Rowland said the settlement is the fourth to be completed by the Central Bank in the past four years.

The high penalty imposed reflects the importance placed on compliance with regulatory reporting obligations, according to the Central Bank.

“The failure by regulated financial services providers to ensure the accuracy of regulatory reporting to the Central Bank undermines the ability of the Central Bank to supervise such institutions and is viewed as a serious matter,” Rowland said in a statement.

The Central Bank noted that the bank’s liquidity position remained in excess of required rations at all times. The firm also noticed the contraventions itself and made the Central Bank aware. It has also taken the necessary remedial steps to rectify the internal issues.

Read: Former Anglo loans worth €2.5bn to be sold as part of ‘Project Evergreen’

More: Iceland jails bank officials for Kaupthing fraud

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