Question

Please research and write a 2-3 page paper on Citigroup's May, 2017 Anti money laundering (AML) $97 million settlement. Consider how that settlement compared to other banks AML solutions. What impact might it have had on Citi's staffing, internal governance and compliance programs going forward. Also, how could the Board of Directors and Top Management handled the situation differently, or do you believe it was handled well there?

Answer 1

Money laundering is frequently happening in several reputed organizations and it leads to devalued the organization name, share value, and lost investments etc. The city group of 2017 AML (Anti Money Laundering) settlement of $97 million. The organization can retrieve the income but they cannot gain the goodwill as is like of reputation in past. So, this is the major negative impact will lead to reducing the share value for some certain period of time.

To avoid this kind of circumstances then the management gives strict guidelines to all level of staff. Also, the top management needs to consider and install the CC cameras in all the locations in an organization. This is a good step to control maximum freeze the money laundering operations in the organization. The one more and critical step is recruiting the officials to audit each and every bit of work and the staff should report and escalate to specially appointed persons and top management. If these strategic planning implemented effectively, the maximum of control or it never happens the money laundering activities any more in the organization.

If already done the activities in past then the management needs to issue a certain memo to respective persons for seeking the explanation and the compliance needs to involve and check detailed information in each of the pinpoints of work. Once they find the wrong activity in their operation so the management needs to go with legally against to involving of persons in money laundering. If the management follows the above certain actions then money laundering will not happen in the organization then the board of directors and top management will not be lost reputation forever.