British authorities have imposed a penalty of more than £4.7m ($6.3m) on Citigroup’s UK operation over breaches of sanctions related to Russia.
According to the Office of Financial Sanctions Implementation (OFSI), Citibank NA’s (CBNA) London branch handled 970 payments with a combined value of more than £19.7m through accounts that ought to have been subject to restrictions.
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In a statement to Retail Banker International, the bank said: “We are pleased to conclude this matter with OFSI. Citi takes sanctions compliance extremely seriously and continues to invest significantly in its global sanctions’ compliance framework.
“CBNA London proactively engaged with OFSI and cooperated throughout its investigation. We remain committed to working closely with sanctions authorities and supporting our clients through a strong and effective control environment.”
Majority of the breaches happened in the period following Russia’s 2022 invasion of Ukraine, when governments introduced sanctions against a broad group of Russian people and companies.
Some of the payments that Citi later reported to the OFSI were made as recently as 2025.
The OFSI, part of the Treasury, said the failings were “material and significant and they occurred across a wide range of business areas and systems within the bank”.
It also said that certain accounts were used by firms connected to PJSC Sovcomflot, Russia’s largest shipping company.
In February this year, Citi completed the sale of its former Russian subsidiary, AO Citibank, to Renaissance Capital, marking the bank’s full withdrawal from Russia.
The agreement covers all remaining business activities in the country and affects around 800 employees.
Approvals for the transaction included sign-off from President Vladimir Putin in November last year, followed by internal approval within Citi in December.
