NEW YORK (Reuters) - Citigroup Inc (NYSE:C) will search for a new compliance chief as its general counsel takes on oversight of compliance functions in keeping with a 2020 order from U.S. federal regulators, according to an internal memo.
The current chief compliance officer, Mary McNiff, will remain in the role until later this year when she will take another job at Citi, according to the memo sent by Chief Executive Jane Fraser to employees on Friday and seen by Reuters.
Federal regulators in October 2020 directed Citigroup to pay a $400 million fine and fix persistent risk management and operational problems that have led to multiple violations and penalties over the years. Among the requirements was setting a timeline for transferring its compliance functions to its general counsel from its chief executive.
The reason for requiring the transfer was not spelled out, but some governance experts say that compliance staff should have independence from executives who might benefit from short-cutting.
This past October, Citigroup named a new general counsel, Brent McIntosh. McNiff will now report to McIntosh until she changes jobs. She had been named compliance chief in June 2020.
Citigroup executives have said that resolving the regulatory orders is a top priority and is driving a multi-billion dollar push to overhaul its information systems and processes. They have declined to estimate how much more time and money will be required to satisfy regulators.
The memo from Fraser also said that Jessica Roos, who became Citi's chief auditor in April 2019, is becoming the head of a new business services office created to accelerate the drive to link and simplify the bank's data, processes and controls.
Roos will be succeeded by Nadir Darrah, who was recently chief auditor of the bank's primary subsidiary. He joined Citi in 2015.