A former Citigroup executive has launched a lawsuit alleging the bank sacked her after she raised concerns about its efforts to court U.S. President Donald Trump as a client and its broader risk-management practices. Citigroup, a major global financial services institution providing a wide range of banking, lending, and wealth management services, vehemently denies the claims. The complaint, filed anonymously in a Brooklyn federal court, claims the former managing director in its wealth unit faced retaliation.
Filed under the pseudonym Jane Doe, the lawsuit states the former executive flagged several risk-management deficiencies, including issues with “know your customer” checks. These crucial checks are standard practice for financial institutions to assess potential risks when onboarding new clients. A redacted section of the complaint further alleges that the executive voiced concerns as Citigroup was considering opening a so-called numbered account for U.S. President Trump last year. Such an account would have been largely anonymous to most employees, making it more challenging to monitor.
Citigroup has strongly dismissed the allegations, stating, “As with the other complaint filed by this plaintiff’s attorney against Citi, this suit has absolutely zero merit and we’ll demonstrate that through the legal process.” The lawsuit emerges amidst increased scrutiny on “debanking,” a process where financial institutions suddenly cut off or restrict services to individuals or businesses. Authorities have recently focused on what has been characterised as politically motivated debanking, creating complexities for lenders who assert they are merely adhering to risk-management rules.
