Dive Transient:
- Citi’s chief compliance officer, Mary McNiff, will step down from her submit this 12 months and transfer to a different place throughout the firm, CEO Jane Fraser instructed staff Friday in a memo seen by Reuters and American Banker.
- The financial institution’s chief auditor, Jessica Roos, additionally will take one other function at Citi — as chief of a brand new enterprise providers workplace, Reuters reported, citing the memo.
- Citi didn’t element what McNiff’s new function shall be. Nevertheless, the financial institution’s subsequent chief compliance officer will not serve on the chief administration crew, American Banker reported.
Dive Perception:
The management shuffle seems to be structural. Below a consent order the Federal Reserve handed Citi in October 2020, the financial institution’s basic counsel should oversee compliance, a Citi spokesperson instructed American Banker on Monday.
McNiff, who has served as chief compliance officer since June 2020, had reported on to Fraser. She is going to report back to Basic Counsel Brent McIntosh till she leaves that place, in line with Friday’s memo.
Earlier than taking the compliance function, McNiff had led Citi’s consumer-banking division for a 12 months and served because the financial institution’s chief auditor, in line with her firm profile.
Roos succeeded McNiff as chief auditor, taking the function in Aprl 2019, in line with LinkedIn and Bloomberg. Roos’ successor, in flip, shall be Nadir Darrah, who most not too long ago served as chief auditor of information and transformation for Citi’s consumer-banking division, in line with his firm profile.
Shortly after McNiff turned chief compliance officer, the Workplace of the Comptroller of the Foreign money (OCC) fined Citi $400 million over “deficiencies in enterprise-wide threat administration, compliance threat administration, knowledge governance, and inner controls.”
The Fed’s consent order got here the identical day, demanding the financial institution make key modifications to its administration reporting construction to higher make sure the autonomy of its compliance division.
The financial institution mentioned it was spending $1 billion in 2020 to enhance its threat administration frameworks and controls, a determine that seems to have escalated. On the financial institution’s trade day final week, Citi mentioned it goals to double its regulatory spending to $3.5 billion in 2022.