A Citigroup Inc. brokerage unit\u2019s failure to run adequate background checks on thousands of employees led to three individuals who\u2019d been convicted of crimes working for the firm, an industry regulator said.<\/p>\n
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\u00a0statement. At least 520 of the employees weren\u2019t finger-printed. All the workers were non-registered, meaning they weren\u2019t brokers.<\/p>\n
\u201cFinra member firms must live up to their responsibility as a gatekeeper protecting investors from bad actors,\u201d said Susan Schroeder, executive vice president of the regulator\u2019s enforcement division. \u201cIt is important that firms appropriately screen all employees for past criminal or regulatory events that can disqualify individuals from associating with member firms, even in a non-registered capacity.”<\/p>\n
Citigroup Global Markets didn\u2019t admit or deny the allegations, and the firm self-reported the alleged infractions to Finra. A Citigroup spokeswoman said the firm is pleased to have the matter resolved.<\/p>\n
JPMorgan Chase\u00a0settled\u00a0similar allegations with the industry backed regulator in 2017.<\/p>\n","protected":false},"excerpt":{"rendered":"
A Citigroup Inc. brokerage unit\u2019s failure to run adequate background checks on thousands of employees led to three individuals who\u2019d 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 […]<\/p>\n","protected":false},"author":1,"featured_media":3744,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[30],"tags":[],"class_list":["post-3743","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-background-checks"],"yoast_head":"\n