Citigroup: a culture and history of tax evasion By Lucy Komisar Contents Introduction The Private Bank The Offshore System In Their Own Words The Nassau Parking Scandal of 1975-1980: laundering profits Laundering Money for Pinochet Australia: tax evasion scheme of late 1980s Private Banking, the key to the system: Laundering money for Salinas, Bongo, the Abachas Argentine offshore bank scam of the 1990s, plus a secret videotape wherein a Citibanker offers to launder a "businessman's" profits Moving Russian money offshore in the 1990s Japan: helping clients evade taxes The Clearstream accounts: another secret system for moving money Today: Private Bank chief for Latin America and Europe America lauds secrecy List of Citigroup's offshore subsidiaries The curious Jersey network Unanswered questions Watch what they do, not what they say Sources & documentation This report describes and details a history of tax evasion by the world’s largest financial conglomerate, Citigroup.
Citing bank secrecy laws, Citigroup gave the U.S. Senate Investigations Subcommittee very limited information about Pinochet accounts and transactions involving its foreign affiliates in offshore venues such as the Bahamas or Switzerland and even Chile, Argentina and the UK.
Critical account of Citigroup’s 100- year history in Argentina, including its role in creating the country’s massive debt, its political influence, and its laundering of money for offshore shell banks.
[I]t allows various tax benefits and administrative benefits to the client ....” Citigroup opened 29 accounts or CDs for the Pinochets in the name of offshore corporations or trusts: five in the name of Meritor Investments; seven in the name of Trust MT4964N; and 17 in the name of Redwing Holdings.
Going back decades, it is a story of repeated, aggressive tax evasion for itself and clients, depriving governments and therefore citizens of huge amounts of funds and carried out with relative impunity. The Tax Justice Network nominates Citigroup for the Public Eye on Davos Award for excelling in socially irresponsible behavior by engaging in tax evasion and facilitating tax evasion by its clients.
General Accounting Office (GAO) issued a report that Citigroup from 1991 through January 2000 had allowed more than $800 million in suspicious Russian funds to flow through 136 U.S. accounts tied to shell companies registered in Delaware.
A day later, the head of Citigroup’s global anti-money laundering group responded that an earlier global search had not turned up any Pinochet accounts at the bank.
Moving Russian money offshore in the 1990s Japan: helping clients evade taxes The Clearstream accounts: another secret system for moving money Today: Private Bank chief for Latin America and Europe America lauds secrecy List of Citigroup's offshore subsidiaries The curious Jersey network Unanswered questions Watch what they do, not what they say Sources & documentation This report describes and details a history of tax evasion by the world’s largest financial conglomerate, Citigroup.
Citigroup Avoided Paying $11.5 Billion In Taxes Thanks To Tax Shelters | HuffPost Impact
Over the next four years, Citigroup aggressively moved to make use of shelters in order to shield its earnings from U.S. taxation, doubling the amount of money it held offshore, according to a new report by the U.S. Public Interest Research Group, a nonprofit that advocates for corporate tax reform.
Wages & economic policyConfirmed
Citigroup offered to help an Argentine businessman evade Argentine taxes through a secret 2001 videotape
The full report, available at www.taxjustice.net or in advance (contact media@taxjustice.net, +44 (0)7712 655130), includes: • An examination of the puzzling ownership structure of a network of Citigroup subsidiaries in Jersey • Citigroup's unprecedented use of secret 'Clearstream' bank accounts - more than any other bank • Transcripts of a secret 2001 videotape showing a Citibank employee offering to help an Argentine businessman to evade Argentine taxes • Profit-laundering for Russian plutocrats in the late 1990s • Citigroup's provision of secretive banking facilities for Chilean dictator Augusto Pinochet; Omar Bongo, President of Gabon; Raúl Salinas, brother of the former President of Mexico, imprisoned in Mexico for murder; sons of General Sani Abacha, former military dictator of Nigeria; and two daughters of ex-President Suharto of Indonesia • An illegal foreign exchange scheme to move Citigroup profits to low-tax regimes through Nassau in the late 1970s.
The full report, available at www.taxjustice.net or in advance (contact media@taxjustice.net, +44 (0)7712 655130), includes: • An examination of the puzzling ownership structure of a network of Citigroup subsidiaries in Jersey • Citigroup's unprecedented use of secret 'Clearstream' bank accounts - more than any other bank • Transcripts of a secret 2001 videotape showing a Citibank employee offering to help an Argentine businessman to evade Argentine taxes • Profit-laundering for Russian plutocrats in the late 1990s • Citigroup's provision of secretive banking facilities for Chilean dictator Augusto Pinochet; Omar Bongo, President of Gabon; Raúl Salinas, brother of the former President of Mexico, imprisoned in Mexico for murder; sons of General Sani Abacha, former military dictator of Nigeria; and two daughters of ex-President Suharto of Indonesia • An illegal foreign exchange scheme to move Citigroup profits to low-tax regimes through Nassau in the late 1970s
Labor & working conditionsConfirmed
Jane Fraser orders 1000 job cuts
Citigroup CEO Jane Fraser announced 1,000 job cuts and warned staff they are not graded on effort.
Citigroup CEO Jane Fraser, one of Fortune‘s Most Powerful Women—and the top female executive on Wall Street—is pushing ahead with about 1,000 job cuts and has warned staff that “we are not graded on effort” in a fiery internal memo setting a tougher tone for 2026.
Corporate conductConfirmed
Citigroup ordered to pay $285 million in disgorgement, interest, and penalties
Citigroup was ordered to pay $285,000,000 in disgorgement, prejudgment interest, and penalties.
The Board of Governors hereby assesses Citigroup a civil money penalty in the amount of $8,600,000 to be paid upon the execution of this Consent Assessment Order by Fedwire transfer of immediately available funds to the Federal Reserve Bank of Richmond, ABA No. 05 1000033, beneficiary, Board of Governors of the Federal Reserve System.
WHEREAS, the conduct described above occurred while Citigroup and CitiFinancial were subject to the Consent Order, which required them to remedy deficiencies relating to mortgage servicing; WHEREAS, as a result of the conduct described above, Citigroup, through CitiFinancial, engaged in unsafe or unsound banking practices within the meaning of section 8 of the FDI Act, as amended (12 U.S.C. § 1818); WHEREAS, Citigroup and CitiFinancial have taken steps to address the deficiencies that were the subject of the Consent Order, replaced, where necessary, the affidavits potentially impacted by the conduct described above with properly executed and notarized affidavits, and taken steps to correct weaknesses related to the conduct described above; WHEREAS, as of September 15, 2017, Citigroup has completed the exit of the mortgage servicing business of CitiFinancial; WHEREAS, the Board of Governors issues this Order of Assessment of a Civil Money Penalty Issued Upon Consent (the “Consent Assessment Order”) against Citigroup; WHEREAS, Citigroup has consented to the assessment of a civil money penalty in the amount of $8,600,000 by the Board of Governors pursuant to sections 8(b)(3) and (i)(2)(B) of the FDI Act, as amended (12 U.S.C.
Corporate conductSettlement
Regulators fined Citigroup $400 million and ordered the firm to improve its risk management systems
Later that year, banking regulators fined Citigroup $400 million and ordered the firm to improve its risk management systems.
One such example was when, in 2020, Citigroup accidentally wired $900 million to a group of lenders at beauty company Revlon instead of an intended interest payment of just $7.8 million.
A federal appeals court on Tuesday said a Citigroup vice president was not entitled to a share of a $400 million civil fine that the bank agreed to pay in October 2020 over its risk management failures.
WHEREAS, an examination conducted by the Reserve Bank in 2023 regarding Citigroup’s remediation efforts related to the 2020 Order (the “2020 Order execution exam”) found that Citigroup’s progress in executing its plan to enhance its data quality management program under paragraph 4 of the 2020 Order, or toward the implementation of appropriate compensating controls has not been adequate;
Labor & working conditionsAllegation
Citi is accused of discriminating against Armenian Americans
Citi is accused of discriminating against Armenian Americans through its handling of credit card applications.
In its investigation, the bureau found that Citi employees were instructed to single out applications that had Armenian last names, but then to conceal the real reason why those applications were denied.
Citigroup discriminated against Armenian Americans, federal regulator says; bank fined $25.9 million | AP News
CFPB officials said the case involves “hundreds of individuals” who were impacted by Citi’s discrimination, which is relatively small for a bank that has tens of millions of customers.
In 2023, for example, Citi violated the Equal Credit Opportunity Act, by discriminating against Armenian American credit card applicants.16 It was fined more than $24 million by the Consumer Financial Protection Bureau (CFPB) and ordered to implement a compliance management system to prevent future violations.17 In 2016, the CFPB also took two actions against Citi, for illegal debt sales and debt collection practices, ordering Citi to pay nearly $5 million in consumer relief and a $3 million penalty.18 It is not clear that a transaction would have any public benefits, while it could lead to an even more unmanageable conglomerate that inflicts consumer harm. Given my concerns, I request that Citi answer the following questions by July 22, 2026.
In 2015, Citi paid almost $750 million for “deceptive and unfair practices” linked to overcharging credit card customers.
The CFPB noted that Citi has a history of recently violating consumer financial protection laws. It paid $335 million in 2018 to 1.75 million consumer credit card holders for allegedly violating the Truth in Lending Act.
Citi targeted Armenian Americans and treated them like criminals, US regulator alleges | CNN Business
This compliance plan required Citi to monitor training materials as well as the written and oral communications of their employees responsible for approving and denying credit card applications.
“On October 16, 2025, the CFPB terminated the consent order, claiming that Citi “has fulfilled certain obligations” laid out in the consent order.
On November 8, 2023, the CFPB issued a consent order finding that Citi discriminated against consumers based on their national origin and therefore violated the Equal Credit Opportunity Act (ECOA), Regulation B, and the Dodd-Frank Wall Street Reform and Consumer Protection Act.
As a result, CFPB issued a judgement against Citi, requiring the bank to pay $1.4 million to the affected consumers and a $24.5 million civil penalty.
On October 16, 2025, the CFPB terminated the consent order, claiming that Citi “has fulfilled certain obligations” laid out in the consent order.
We write in response to the Consumer Financial Protection Bureau’s (CFPB) termination of the consent order holding Citigroup Inc. (Citi) accountable for its alleged discrimination against Armenian Americans through its handling of credit card applications.
April 23, 2026 The Honorable Russell Vought Acting Director Consumer Financial Protection Bureau 1700 G St. NW Washington, DC 20552 Dear Acting Director Vought, We write in response to the Consumer Financial Protection Bureau’s (CFPB) termination of the consent order holding Citigroup Inc. (Citi) accountable for its alleged discrimination against Armenian Americans through its handling of credit card applications.
On October 16, 2025, the CFPB terminated the consent order, claiming that Citi “has fulfilled certain obligations” laid out in the consent order.5 The Bureau claimed these obligations included paying a $24.5 million civil money penalty, making redress payments, and “taking steps to implement injunctive relief to prevent future violations” of the consent order.6 This termination effectively invalidates the consent order, even though CFPB originally intended for it to remain in effect until 2028.7 The CFPB has a statutory obligation to protect consumers and ensure equal access to credit.
Citi employees also referred to applicants as “Armenian bad guys” and the “Southern California Armenian Mafia” and negatively singling out their creditworthiness, behavior which was actively encouraged by supervisors and trainers.2 On November 8, 2023, the CFPB issued a consent order finding that Citi discriminated against consumers based on their national origin and therefore violated the Equal Credit Opportunity Act (ECOA), Regulation B, and the Dodd-Frank Wall Street Reform and Consumer Protection Act.
This compliance plan required Citi to monitor training materials as well as the written and oral communications of their employees responsible for approving and denying credit card applications.
Corporate conductSettlement
Citigroup was fined by the European Commission for participating in a foreign exchange spot trading cartel
Antitrust: Commission fines Barclays, RBS, Citigroup, JPMorgan and MUFG €1.07 billion for participating in foreign exchange spot trading cartel Brussels, 16 May 2019 In two settlement decisions, the European Commission has fined five banks for taking part in two cartels in the Spot Foreign Exchange market for 11 currencies - Euro, British Pound, Japanese Yen, Swiss Franc, US, Canadian, New Zealand and Australian Dollars, and Danish, Swedish and Norwegian crowns.
If proven, such behaviour would be in violation of EU antitrust rules (Articles 101 and 102 of the Treaty on the Functioning of the European Union – TFEU). The 16 CDS bank dealers are: JP Morgan, Bank of America Merrill Lync h, Barclays, BNP Paribas, Citigroup, Commerzbank, Crédit Suisse First Boston, Deutsche Bank, Goldman Sachs, HSBC, Morgan Stanley, Royal Bank of Scotland, UBS, Wells Fargo Bank/Wachovia, Crédit Agricole and Société Générale.
It marks the successful completion of our antitrust investigation in the Yen interest rate derivatives sector – but not the end to our efforts to fight anticompetitive practices in financial markets." The Commission imposed fines totalling € 669 719 000 on the banks UBS, RBS, Deutsche Bank, Citigroup, JPMorgan and on the broker RP Martin in December 2013. These companies had admitted their involvement in one or more cartels in the YIRD sector, which allowed the Commission to settle the case with them. In the YIRD sector, the Commission uncovered seven distinct bilateral infringements lasting between 1 and 10 months in the period 2007 to 2010. The anticompetitive conduct concerned discussions between traders of the participating banks on certain JPY LIBOR submissions. The traders involved also exchanged, on occasions, commercially sensitive information relating either to trading positions or to future JPY LIBOR submissions. ICAP chose not to settle the case.
Antitrust: Commission fines Barclays, RBS, Citigroup, JPMorgan and MUFG €1.07 billion for participating in foreign exchange spot trading cartel Brussels, 16 May 2019 In two settlement decisions, the European Commission has fined five banks for taking part in two cartels in the Spot Foreign Exchange market for 11 currencies - Euro, British Pound, Japanese Yen, Swiss Franc, US, Canadian, New Zealand and Australian Dollars, and Danish, Swedish and Norwegian crowns.
Corporate conductSettlement
Citigroup Inc. settled with the U.S. Trustee Program to protect consumers' personal information in bankruptcy cases
The settlement involving Citigroup Inc. concerns Consumers’ Personal Information.
Trustee Program Announces Successful Conclusion Of Settlement With Citigroup Inc. To Protect Consumers’ Personal Information In Bankruptcy Cases
Corporate conductConfirmed
Citigroup implemented remedial actions for sanctions violations
Citigroup added name variations to its interdiction filter and implemented a programmatic fix after an apparent violation involving Higher Institute of Applied Science and Technology.
OFAC considered the following to be mitigating factors: no Citigroup managers or supervisors were aware of the conduct that led to the apparent violations; U.S. financial institutions blocked the February 9, 2010, January 12, 2011, and October 29, 2012, funds transfers, thereby limiting the economic harm to the sanctions program objectives of the WMDPSR and GTSR with respect to those transactions; Citigroup took remedial action to ensure that specific name variations were added to its interdiction filter, and implemented a programmatic fix in response to the January 12, 2011, apparent violation involving Higher Institute of Applied Science and Technology; Citigroup has not received a penalty notice or Finding of Violation from OFAC in the five years preceding the earliest date of the transactions giving rise to the apparent violations; and Citigroup cooperated with OFAC during the course of these investigations, including by responding thoroughly and promptly to OFAC’s requests for information in relation to all of these matters and by entering into a statute of limitations tolling agreement.