Citigroup Fined $45 Million For ‘Dishonest’ Decade in Hong Kong

Hong Kong’s securities regulator imposed a fine of HK$348.3 million ($44.6 million) on Citigroup Inc. for “serious regulatory failures” when executing stock trades for clients between 2008 and 2018, citing deficiencies in internal controls, compliance and management oversight for the “pervasive dishonest behaviour.”

The Securities and Futures Commission reprimanded Citigroup’s Asian markets unit for allowing trading desks under its cash equities business to make misrepresentations to institutional clients, according to a statement Friday. The regulator said it will commence disciplinary proceedings against “certain former members” of the division’s senior management in due course.

The U.S. bank’s failures in Hong Kong ...