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Date Issue Title
10th May 2006 Other Issue Citibank overcharged customers in Japan

A computer glitch at Citibank branches in Japan has caused 274,800 incorrect transactions over the past week, the latest Japanese problem at the firm.

As a result of the error, some account holders had transactions wrongly recorded twice, while others took place but then did not appear on statements.

Citibank said the computer problem had now been fixed.

Citibank and its parent Citigroup have both come under fire from Japanese financial regulators in recent months.

Citibank said on Wednesday that the computer problems from 2 May to 8 May were caused by errors in a new computer system that occurred despite testing.

"Citibank Japan deeply regrets that this incident has occurred," it said in a statement.

"The bank is taking the necessary measures to prevent further occurrence."

A spokesman added that the bank could not say how much money was involved in the 274,800 incorrect transactions.

Last month, Japan's Financial Services Agency accused Citigroup's Japanese trust banking unit of misleading inspectors, and ordered it to halt all new operations from 2 May.

Citigroup has also been forced to close its private banking service for wealthy customers after it was found to have misled account holders about the financial risks, and failed to safeguard against money laundering.

It also recently acknowledged that its Japanese management had "failed to establish a culture that ensured ongoing compliance with laws and regulations".

Other Reports on CitiGroup
Date Issue Company Report
7th Aug 2008 Questionable Practice CitiGroup Citigroup reaches SEC settlement
28th Jun 2005 Other Issue CitiGroup Citigroup fined 14m by UK watchdog
10th Jun 2005 Fraud Investigation CitiGroup Citigroup pays $2bn in Enron case
25th Jan 2005 Fraud Investigation CitiGroup Criminal probe on Citigroup deals
4th Oct 2004 Fraud Investigation CitiGroup South Korea to scrutinise Citigroup
17th Sep 2004 Questionable Practice CitiGroup Japan closes Citigroup branches
11th May 2004 Fraud Investigation CitiGroup Citigroup settles Worldcom claims
19th Jun 2003 Other Issue CitiGroup Citicorp Brokerage Executive Fired

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