It has been alleged that a long-time Citi employee stole millions of dollars from customers of its premium retail bank.
Bank Indonesia’s governor Darmin Nasution told lawmakers at a hearing in parliament that they have questioned Citigroup’s executives including the country head because of problems with its internal controls.
"We have sent a letter to ask the bank to settle the problems without causing further losses to customers, to improve the internal controls and temporarily halt accepting new Citigold customers," Nasution said.
Citi in an e-mailed statement said that they are seeking clarification on the comments made but they will comply with whatever regulator requires.
"We understand it was said to be a temporary measure, and has no impact on the services we offer our existing Citigold customers," Citi said.
Citibank had witnessed a similar kind of fraud perpetrated by a senior employee at a branch in India, wherein customers were duped of wealth worth about $100m.
