Citigroup Hired Three Criminals Due to Poor Background Checks
- Finra fines Citi unit $1.25 million over employee screening
- Bank brokerage unit settles case without admitting wrongdoing
Photographer: Victor J. Blue/Bloomberg
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A Citigroup Inc. brokerage unit’s failure to run adequate background checks on thousands of employees led to three individuals who’d been convicted of crimes working for the firm, an industry regulator said.
Citigroup Global Markets Inc. insufficiently screened 10,400 workers from January 2010 until May 2017, triggering a $1.25 million fine, the Financial Industry Regulatory Authority said in a Monday statement. At least 520 of the employees weren’t finger-printed. All the workers were non-registered, meaning they weren’t brokers.