Citi Chief Compliance Officer Mary McNiff will step down from her current position later this year and accept another post within the bank, according to an internal memo distributed Friday by Chief Executive Jane Fraser.
McNiff will continue to serve as CCO this year and remain a member of the bank’s executive team, according to a Citi spokeswoman. The bank has immediately launched a search for her successor as CCO.
McNiff will now report to Citi General Counsel Brent McIntosh, who is also a member of the bank’s executive team. Once hired, the new CCO will report to McIntosh and not be a member of the executive team. Instead, he or she will be a member of the global operating team, a forum of senior leaders that includes the executive team.
Citi did not share a copy of the memo with Compliance Week, but through a spokesperson the bank answered questions about its contents.
McNiff became Citi’s CCO in June 2020 after a year as CEO of Citibank, N.A. She gave a keynote address at Compliance Week’s 2021 National Conference.
The move to reshuffle compliance leadership and lines of reporting was made to comply with a pair of orders issued in 2020 by the Office of the Comptroller of the Currency (OCC) and Federal Reserve against Citibank, which included a $400 million fine. The two regulators ordered Citi to address “significant” risk and compliance failures, including “long-standing” deficiencies in generating and evaluating its customer data and weaknesses and deficiencies in its risk management programs and internal controls.
At the time, Citi pledged to spend $1 billion to improve and strengthen its compliance program and address the deficiencies identified by regulators.
Contained in the Federal Reserve’s cease-and-desist order is a provision that “Citigroup’s general counsel shall have overall responsibility for oversight of the compliance function at Citigroup and its subsidiaries.” As a result, the bank’s independent compliance risk management function will now report to McIntosh. The move is meant to strengthen collaboration between the bank’s compliance and legal functions as it navigates the terms of the order and build on the risk management foundation the compliance team has already laid.
The bank announced other leadership changes as well.
Chief Auditor Jessica Roos was tapped to lead the newly established business services office. The office was formed to accelerate the bank’s efforts to simplify itself, which will be accomplished by “breaking down silos; driving ownership; and linking our processes, data, technology, risks, and controls. This new function will help us better serve our global clients and deliver with excellence end-to-end,” the bank said.
Nadir Darrah was named to succeed Roos as chief auditor. She will report to Fraser and James Turley, the audit committee chair on Citi’s board of directors, the bank said. Darrah has been at Citi since 2015 and has more than 25 years of audit experience.