Britain’s sanctions watchdog has fined Citibank’s London branch £4.7 million for processing nearly a thousand payments that should have been blocked under Russia restrictions, a penalty that underscores how difficult compliance remains even for banks that have largely exited the country.
The breach spanned years and business lines
The Office of Financial Sanctions Implementation said the bank handled 970 transactions worth £19.7 million for accounts that ought to have been frozen. Most occurred in the months after the 2022 invasion of Ukraine, but the regulator noted that some of the payments Citi itself reported took place as recently as 2025. OFSI described the failures as material and significant, spread across multiple business areas and internal systems.
Sovcomflot links surface in the detail
A number of the accounts involved were used by entities connected to PJSC Sovcomflot, Russia’s largest shipping company. The designation matters because Sovcomflot has been a primary target of western sanctions aimed at degrading the Kremlin’s ability to move oil and revenue.
Citi’s exit was already underway
The bank has been winding down its Russian presence for years. By 2025 it had halted almost all institutional services there, and in November of that year secured personal approval from President Vladimir Putin to sell its local subsidiary. The fine covers a period when the London branch was still handling legacy flows tied to that unwind.
Cooperation noted but not a shield
A Citi spokesperson said the firm was pleased to close the matter and highlighted its proactive engagement with OFSI throughout the investigation. The regulator’s decision to publish the penalty anyway signals that cooperation does not erase the underlying control gaps.