Former Citi Risk Executive Alleges She Was Fired After Raising AML Concerns
By CU Today Staff —
NEW YORK—Citigroup is facing a whistleblower lawsuit from a former senior risk management executive who alleges the bank terminated her employment after she raised concerns about risk-management deficiencies and shortcomings in the institution's anti-money laundering controls.
According to Law360, the former executive filed suit in federal court alleging she identified weaknesses in Citi's AML risk-management framework and other control issues, but was subsequently fired after escalating those concerns internally. The lawsuit contends the termination was retaliatory and came after repeated efforts to address compliance and risk issues within the bank.
Law360 reported that the plaintiff is also seeking permission to proceed anonymously, arguing that public disclosure of her identity could damage her career and expose her to professional retaliation. Citigroup has opposed that request, telling the court the allegations do not justify anonymity and that the bank would be prejudiced in defending itself against unnamed accusations.
The lawsuit adds to ongoing scrutiny of Citi's risk-management and compliance programs, areas that have drawn attention from regulators in recent years. Citi has denied the allegations and is challenging the executive's attempt to proceed under a pseudonym, setting up an early court battle over both the merits of the claims and the manner in which the case will proceed.
Originally reported by CU Today.