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In a startling incident, Citigroup mistakenly transferred $81 trillion instead of the intended $280 to a client in April 2023. According to the Financial Times, the error stemmed from oversights by a payments department employee and another staff member responsible for verifying the transaction.
The monumental blunder was detected by a third employee who identified issues with the bank's accounts, allowing them to halt the payment just 90 minutes after it had been recorded. It reportedly took hours for Citigroup to reverse the transaction, but ultimately, no bank funds were lost. The incident has been reported to US regulatory authorities as part of a broader concern regarding the bank's risk management protocols.
The Financial Times also noted that Citigroup experienced ten similar erroneous transactions last year, each involving amounts over $1 billion, with all funds being recovered. Jane Fraser, the bank's CEO, has identified rectifying risk management issues as her top priority, following the imposition of a $136 million fine by US regulators for ongoing deficiencies in risk control and data management.