In April last year, Citibank sent $81 trillion (INR 7,00,00,00,00,00,00,000 crore) to a client when it was supposed to send $280 (INR 24,500) but two employees did not notice the mistake and a third employee noticed the mistake 90 minutes later. It was discovered that the transaction was immediately reversed and Citibank informed the regulators that no funds actually left the bank.
A Citibank spokesperson said that internal controls had identified the error and that preventive measures would have refused any unauthorized transfers. This incident is among the many similar near misses that have been identified in a recent report to have occurred more than $1 billion. Last year, Citibank made 10 such errors and the transactions were concluded that year alone are a cause for concern in terms of security.
It is not the first time Citibank has made such a error. In 2020, the bank made a $900 million transfer to Revlon lenders which attract a $400 million fine for failing to manage risks effectively. Nonetheless, Citibank still wants the public to know that its security systems are still very much efficient and that such a mistake is infrequent and that improvements are being made.
Although this last slip up was discovered and rectified quickly, it reveals the possibilities that exist in financial systems, particularly at large corporations such as Citibank. It has also sparked debate into the efficiency of internal controls and procedures to prevent such a huge mistake.
Citibank has not been a perfect company, but it still believes in its ability to process large transactions and ensure the integrity of its financial services. The bank’s continuing investment in security systems is to ensure that such a mistake is not made again in the future.
