According to Citigroup itself, the agency has issued a ‘Business Improvement Order’ to the lender in response to IT based processing problems that led to over 250,000 transactions on both consumer and corporate accounts being mis-recorded.
The mistakes apparently occurred between May 2 and 8, and involved both withdrawals and deposits not being correctly recorded. Citigroup says the problem occurred in the data processing and development center of a Singapore-based affiliate that provides support to Citibank Japan.
Citibank Japan added in a statement that it takes the business improvement order seriously and apologizes to all parties concerned. The US lender’s Japanese division will submit a comprehensive business improvement plan to the FSA by August 14.
The unfortunate Japanese development comes as Citigroup has reported increasing its income from continuing operations by 11% to $5.26 billion in the second quarter. Revenues improved by 10% over the same period.