Citigroup Oversaw $1 Billion for Trust Linked to Sanctioned Russian

Citigroup Inc. oversaw about $1 billion in transactions for a U.S. trust in which a sanctioned Russian oligarch held a concealed interest, according to documents cited on 11 August. The arrangement allowed the trust to conduct deals while masking the involvement of the black-listed individual, potentially exposing the bank to violations of U.S. sanctions rules. The disclosure adds to scrutiny of large financial institutions’ monitoring of clients connected to Russia since the invasion of Ukraine prompted extensive Western sanctions. Citigroup did not immediately comment on the documents, which do not indicate whether the bank knew of the oligarch’s stake. Regulators can impose substantial penalties on firms that facilitate business for sanctioned parties, even inadvertently.