The Bank of England has fined the US bank Citigroup a record £44m for submitting incomplete and inaccurate regulatory information to the Bank between 2014 and 2018.
The Bank's Prudential Regulation Authority (PRA) found that the American group's UK-regulated businesses had overstated their capital strength and had exaggerated their liquidity position by as much as 4%.
"Citi failed to deliver accurate returns and failed to meet the standards of governance and oversight of regulatory reporting which we expect of a systemically important bank," Sam Woods, a Bank of England deputy governor and CEO of the PRA, said in a statement.
Citi failed to deliver accurate returns and failed to meet the standards of governance and oversight of regulatory reporting which we expect of a systemically important bank"
The fine, the largest imposed by the Bank of England, was levied on three of Citi's UK units: Citigroup Global Markets, Citibank NA London branch and Citibank Europe Plc UK branch.
The PRA said the bank's systems were inadequate, that Citi had failed to have enough people working on regulatory accuracy, that it had inadequate documentation and that its oversight and governance "fell significantly below the standards expected".
It added that the errors and omissions included "six substantive matters", which led to significant errors.
New York-based Citi is the third biggest bank in the US, and is designated as a "global systematically important bank". It has assets of $2trn and operates in about 100 countries.
Woods added: 'The PRA's investigation identified that, although during the period under investigation Citi had begun to undertake a significant remediation programme to address data quality issues, the internal controls and governance arrangements which underpinned Citi's UK regulatory reporting were not in a number of respects designed, implemented or operating effectively.
'They were therefore inadequate to ensure accurate regulatory reporting for an organisation of Citi's size, complexity and systemic importance. This led to the significant number of errors and misstatements identified in Citi's returns."
In a statement the Wall Street bank said: "Citi has fully remediated the past regulatory reporting issues identified by the PRA, and settled this matter at the earliest possible opportunity."
The group agreed to pay the fine early to qualify for a 30% reduction on the penalty, without which it would have been £62.7m.