((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Adds Citigroup response to paragraph 5)
Citigroup’s expansion plan
China’s CN has hit a snag with U.S. regulators after the Federal Reserve imposed a penalty on the bank over its data handling and risk controls, Bloomberg News reported Sunday.
The bank is facing delays in setting up a standalone securities company because it has not yet received an authorization letter from the U.S. Federal Reserve verifying its regulatory status, which is required by Chinese authorities, Bloomberg said.
Citi was ordered to fix its domestic data management issues after being hit with a combined $136 million in fines in July, the report said. The fines make it harder to comply with China’s licensing rules, the report added.
The New York-based bank is continuing discussions with China’s financial regulator to set up the business and has no plans to withdraw its application, Bloomberg reported, citing people familiar with the matter, adding that the situation is fluid and could change.
Citigroup declined to comment on the ongoing process to obtain a license in China, saying the company remained committed to supporting its clients in the country.
