Reporting Financial

Topics: Money laundering, Bank, Bank Secrecy Act Pages: 8 (2962 words) Published: January 14, 2013

3| An overview of Citibank|
3;4| Summary of the scandal|
5;4| How did the scandal happen|
5;6| Firm’s negligence and how the malpractise was hidden| 6;7| Impact on customer and bank|
7;8| Avoid repeat of such money laundering cases|
8| The role of institutions|
9| References|

Citibank, an international bank was founded in 1812 on June the 16th by a group of New York merchants as the City Bank of New York. Later it joined the U.S.'s new national banking system and became The National City Bank of New York in 1863.And gradually it had been expanded all over the world and also became the first major U.S bank to establish a foreign department in 1897. Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management. Citi works tirelessly to serve individuals, communities, institutions and nations. With 200 years of experience meeting the world's toughest challenges and seizing its greatest opportunities, Citi strive to create the best outcomes for their clients and customers with financial solutions that are simple, creative and responsible. An institution connecting over 1,000 cities, 160 countries and millions of people, Citi is people’s global bank. In addition, Citibank also known as the consumer banking arm of financial services giant Citigroup as this is the third largest bank holding company in the United States by total assets. With a large retail banking operations in more than 160 countries and territories around the world, especially more than 1,400 offices are in the United States mostly in the big city as Chicago, San Francisco Bay Area, New York, Los Angeles and so on.

As Citibank has become one of the world largest corporation banking giant, it is hard to avoid the scrutiny from the media and other companies that are in the competition with the firm, specially the corruption and fraud which happens in the corporation. Moreover, they are the reasons that can lose the firm's image in the consumer's eyes. If it happens, there might be a huge loss for the company not only in terms of financial loss but even bigger reputational loss. Citi lives by its four Key Principles to perform their mission: Common purpose: One team, with one goalOne team, with one goal: serving our clients and stakeholders One team, with one goal: serving our clients and stakeholders One team, with one goal: serving our clients and stakeholders One team, One team, with one goal: serving our clients and stakeholders, serving clients and stakeholders. Responsible Finance: Conduct that is transparent, prudent and dependable. Ingenuity: Enhancing client’s lives through innovation which harness breadth and depth of information, global network and world class products. Leadership: Talented people with the best training who thrive in diverse meritocracy that demand excellence initiative and courage. In spite of company’s values and internal processes, Citibank was involved in a major fraud case in Indonesia. For instance, on March 2011, Jakarta Globe of Indonesia reported that Inong Malinda Dee, 47 years old woman, a former relationship manager at Citibank Indonesia's Landmark Building branch was arrested and had been charged thirteen years in jail for stealing money from customer’s accounts and was involved in banking fraud. She was well known as her wealth which was gained from breaking into customer's money accounts and had transferred about US$5 million from all the wealthiest client of Citigroup and at least Rp17billion of client’s funds from 2007 to...

References: REFERENCES:
(FRIDAY, MAY 6, 2011) ."Indonesia punishes Citi after scandals"
By Femi Adi and Andrea Tan (March 7, 2012)."Ex-Citigroup Indonesia Banker Dee Sentenced to 8 Years in Jail for Theft". [Retrieved on 23 September,2012]
"One of Citibank Scandals May Lead to Money Laundering”
By Rangga Prakoso & Carlos K.Y. Paath (February 17, 2012)."Give Malinda 13 Years in Prison, Prosecutors Demand". [Retrieved on 23 September,2012]
(March 07, 2012)."Citibank 's Malinda Dee Sentenced to 8 Years for Graft"
(Wednesday, April 6, 2011)."Malinda Dee | What Are You Looking For?". http://diachra.blogspot [Retrieved on 23 September,2012]
(7 March 2012)."Citibank 's Malinda Dee: Eight years for Indonesia fraud"
(Friday, 28 September 2012)."New arrest in Citibank scandal". [Retrieved on 23 September,2012]
(Wednesday, March 11, 2009)."The history of Citibank"
By Anthony Deutsch and Taufan Hidayat(May 6, 2011)."Citigroup faces hefty sanctions in Indonesia". [Retrieved on 23 September,2012]
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