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Citigroup has long been committed to making the communities in which it operates better, and at the same time, setting standards for business practices and corporate values that exceed industry norms. To learn more about Citigroup's position relative to a community or business practice issue, read the summary below or click on any of the topics listed at left.
Anti-Money Laundering
What Is Money Laundering?
Money laundering is the process of introducing the proceeds of crime into the legitimate stream of financial commerce in an attempt to mask the origin of the proceeds. The source of the proceeds may include drug trafficking, organized crime, fraud, and many other crimes. Money laundering also provides illicit funds to finance terrorist activities.
Citigroup is fully committed to remaining constantly vigilant to prevent the use of our products and services by those who would abuse them.
Child Care
Understanding the importance of providing employees with programs and tasks to help them meet the challenges of their work and personal responsibilities. When it comes to quality child care Citigroup offers several kinds of support to help employees succeed. In fact, Citigroup is one of Working Mother magazine's "100 Best Companies for Working Mothers." Our programs include:
- 7on-site full-time child care centers, 2 on-site back-up care centers and 4 near-site centers
- More than 500 work locations served by Just in Time Care in 18 U.S. states
- More than 89,000 employees covered by full-time care, back-up care, before- and after-school care, summer or school holiday programs
- Child care discounts in place nationally in the U.S.
- A family care subsidy for eligible employees in every business
Community
At Citigroup, we aspire to be known as a company dedicated to community service, taking a leadership role in every local community around the world in which we operate, and making a positive difference in the communities where we live and work.
Citing the belief that strong financial education programs raise the quality of life for individuals, families and institutions and strengthen communities around the world, Citigroup and the Citigroup Foundation announced on April 7, 2004, a 10-year, $200 million commitment to financial education. The commitment will support financial education programs in the nearly 100 countries where the company operates around the world. Citigroup also announced the formation of an Office of Financial Education and a global initiative designed to encourage its 275,000 employees to support financial education and other charitable causes by granting a day off work to volunteer for a non-profit organization.
In 2003, Citigroup completed four years ahead of schedule the 10-year, $115 billion commitment made following our 1998 merger announcement to lend and invest in U.S. LMI communities and to small business. We also are ahead of goal during the first year of our 10-year, $120 billion commitment to lend and invest in underserved communities in California and Nevada having done $19 billion in lending. During 2003, we also announced a new commitment to make $200 billion available for affordable mortgages in the U.S. through 2010.
For close to 40 years, Citigroup has been a pioneer funder of microfinance programs knowing that it can help poor families improve their lives, as well as help build the private sector in poor countries and create jobs. Over the past 5 years, the Citigroup Foundation has made $17 million in grants to 178 microfinance partners in 50 countries.
Citigroup believes that working to conserve and enhance the environment is good business practice. One of our recent major initiatives was being part of a consortium of banks that developed and, in June 2003, adopted the Equator Principles. The Equator Principles are based on the World Bank and IFC’s policies and guidelines for managing social and environmental issues related to development projects financing around the world. During 2003, Citigroup also adopted a new environmental and social risk management policy and programs for the Global Corporate & Investment Banking group; and launched a new program to invest in sustainable forestry and renewable energy.
Consumer Finance
- As an industry leader, Citigroup’s CitiFinancial, takes very seriously the special responsibility it has within the consumer finance industry to set an example of excellence in the way it conducts its business.
- Subprime lending is simply another name for loans made by consumer finance companies to borrowers who do not have prime-quality credit histories.
- Since 2000, both senior management and CitiFinancial staff have been engaged in implementing initiatives and policy enhancements. Among our many actions:
- We substantially reduced the maximum points on real-estate loans made at our network branches.
- We stopped selling a controversial insurance product.
- We revamped the Associates broker-based operations.
- And, most recently, we expanded our initiatives to include improved credit insurance sales practices throughout our branch network—an Initiative we call “Customer First.”
Employer of choice
Citigroup values a work environment where diversity is embraced, where people are promoted on their merits, and where people treat each other with mutual respect and dignity. Around the world, we are committed to being a company where the best people want to work; where opportunities to develop are widely available; where innovation and an entrepreneurial spirit are valued; and a healthy work/life balance is encouraged.
Service provider of choice
Citigroup strives to deliver products and services to our customers that reflect both our global reach and our deep local roots in every market where we operate. The diversity of our employees enables us to better understand our customers, while the breadth of our product offerings allows us to serve them better.
Business partner of choice
Citigroup works to create mutually beneficial business relationships with minorities, women, disabled veterans, and people with disabilities. We recognize that working with a wide range of professionals, suppliers, and consultants strengthens the communities we serve and creates value for our shareholders.
Neighbor of choice
Citigroup believes it has a responsibility to make a difference in the neighborhoods in which we live and work around the world. We reach out to and form partnerships with nonprofit organizations, civic groups, educational institutions, and local governments representing the diverse nature of these communities.
Environment
Citigroup believes that working to conserve and enhance the environment is a good business practice. As a global corporate citizen, we analyze the potential impact of our business activities and take action to reduce environmental risk or impact, and to promote environmental and community benefits.
We were one of the first U.S.-based financial services companies to implement an environmental affairs program more than 10 years ago. Our program has been helped by a very productive dialogue with a number of our non-governmental organization (NGO) partners and socially responsible investing (SRI) firms who have shared their views and given us feedback on our progress. Our relationships with these stakeholders vary—some provide research, information and counseling on key policy issues; with some we do sustainable development projects supported by philanthropic funding and assistance from our employee volunteers; and with some NGOs and SRIs we engage in dialogue to learn about their views on our citizenship initiatives and to communicate our progress and challenges to them.
Citigroup was reaffirmed in 2005 as a component of the Dow Jones Sustainability World Index, which recognizes companies that rank in the top 10 percent in terms of their superior environmental, social and economic performance. We were also reaffirmed on the FTSE4Good Index for having met specific criteria relating to environmental sustainability, corporate citizenship, shareholder returns, and support of human rights.
Equity Research
- Citigroup has led the financial industry with an aggressive effort to raise investor confidence through a series of reforms related to the independence and credibility of equity research.
- At Citigroup, Equity Research does not report to the Investment Banking Division. (See press release)
- There are no promises of favorable research in return for investment banking business.
- Research analysts will be compensated for only those activities and services intended to benefit investor clients. Investment banking is banned from having any role in the compensation or evaluation of analysts.
- Analysts are prohibited from attending meetings with investment bankers to solicit business from public companies.
- Analysts are prohibited from participating in roadshow presentations to investors.
- Analysts are prohibited from permitting investment bankers to review research reports on public companies prior to publication.
- To access documents and other information relating to this issue and corporate governance, click here.
Our History
For more than a century, Citigroup has helped customers and clients access, build and manage assets.
Our Commitment
$200 million over ten years to support financial education programs and organizations around the world and we established the Citigroup Office of Financial Education to lead our efforts.
Our Vision
Over the next ten years, Citigroup will touch the lives of millions of people by supporting financial education that will help them achieve their dreams.
Our Belief
Knowledge is your greatest asset.SM
We support financial education because it helps people understand how to use financial resources, and in the process, raises the quality of life for individuals, families, and institutions and strengthens communities around the world. Financial education is a natural extension of the work we do every day and a major focus of our effort to make a difference in the communities where we live and work.
Our Focus
Personal: helping people save, invest, borrow, and spend wisely, and manage debt responsibly;
Small Business: helping entrepreneurs save, invest, and secure financing to better manage their capital and grow their businesses;
Institutional: supporting programs that assist governments, academic and financial institutions, and non-profit organizations to promote knowledge and sound management of economics, markets, and financial systems.
Our Reach
In 2003, Citigroup and the Citigroup Foundation provided more than $14 million in support for financial education programs and activities that reached millions of people in more than 40 countries on six continents.
As the largest financial services company in the world, we’re in a unique position to make a difference. We have 275,000 employees with an extraordinary record of community involvement and volunteerism.
Citigroup also announced a global initiative designed to encourage our employees around the world to devote time to support financial education and other charitable causes. Under this new initiative, employees will be able to take a day off each year to volunteer for a non-profit organization.
IPO Allocations
- Citigroup has led the financial industry with an aggressive effort to raise investor confidence through a series of reforms related to initial public offering (IPO) allocations.
- At Citigroup, Equity Research does not report to the Investment Banking Division. (See press release)
- There are no promises of favorable research or IPO allocations in return for investment banking business.
- To access documents and other information relating to this issue and corporate governance, click here.
- We are working with regulators to implement an industry-wide initiative to ban allocations of IPO shares to officers and directors of public companies.
- Our board adopted a policy prohibiting any Citigroup director or immediate family member from receiving an IPO allocation of any kind from any company.
- Citigroup’s involvement in microfinance began in 1965 with a $5,000 grant.
- In the last five years alone, the Citigroup Foundation has awarded more than $17 million in grants to 178 microfinance partners in more than 50 countries.
- Our commitment to microfinance enables us to do what we do best, that is, create opportunity for institutions and individuals by using our global reach and local expertise to expand access to financial services.
- In 2004 we launched Global Microfinance, a business group focused on developing commercial relationships with microfinance institutions to enable them to offer a range of financial products and services.
- Citigroup’s businesses and the Foundation gave a record $88.8 million to organizations in more than 80 countries in 2003, with the Foundation’s international (non-U.S.) grantmaking rising from $8 million in 2000 to $15.7 million today.
- On April 7, 2004 Citigroup and the Citigroup Foundation announced a 10-year, $200 million commitment to financial education.
- The Foundation's grants are awarded in three areas: Financial Education, Educating the Next Generation, and Building Communities and Entrepreneurs.
- To complement our grant giving, Citigroup offers the talents and generous spirit of our 275,000 employees around the world.
- For complete picture of Citigroup's philanthropic program, see the Citigroup Foundation 2003 Annual Report or visit the Citigroup Foundation Web site.
- Citigroup's privacy program highlights two critical aspects of privacy: customer choice and security of a customer's personal information.
- Citigroup would like to encourage customers to take full advantage of the various products and services offered, while still maintaining their confidence about how personal information about them is shared.
- Citigroup remains fully committed to physical, electronic and procedural safeguards, along with employee training and vendor agreements, which meet or exceed applicable laws related to protecting personal information.
- Citigroup has led the financial industry with an aggressive effort to increase financial transparency through a series of reforms related to structured finance.
- Citigroup will execute a material financing transaction only if the client company agrees to publicly disclose to its investors the net effect of the transaction on the financial condition of the company.
- The policy applies to any material financing transaction not accounted for by the client as debt.
- Economic reality, not simply the form of the transaction, is critical.
- As a public company, Citigroup provides enhanced disclosure of its own securitization activities, beyond regulatory requirements, and will follow the same practices it is asking of its clients.
- Citigroup named a new CEO, Charles Prince, to lead its corporate and investment bank to improved business standards and practices. (See press release)
- Citigroup agreed to a settlement with regulators that resolved on a civil basis their investigations into Citigroup's structured finance work for Enron. (See press release)
- To access documents and other information relating to this issue and corporate governance, click here.
Money laundering is the process of introducing the proceeds of crime into the legitimate stream of financial commerce in an attempt to mask the origin of the proceeds. The source of the proceeds may include drug trafficking, organized crime, fraud, and many other crimes. Money laundering also provides illicit funds to finance terrorist activities.
Citigroup is fully committed to remaining constantly vigilant to prevent the use of our products and services by those who would abuse them.
Pursuant to the USA PATRIOT Act and final rules issued by the U.S. Department of the Treasury, a U.S. bank or a U.S. broker-dealer in securities (a "Covered Financial Institution") is required to obtain certain information from any "Foreign Bank" that maintains a correspondent account with it.
As permitted by the final rules, Citigroup has prepared a Global Certification for use by any financial institution that believes it requires a Patriot Act Certification from a Citigroup entity, for example, an overseas branch of Citibank, N.A.
Citi Volunteerism
Volunteerism has long been an integral part of Citi’s culture. For nearly 200 years, Citi’s legacy of innovation and achievement has been part of the fabric of thousands of communities around the world. Every day around the world, our employees put their passion, talent, and expertise to work by helping organizations and causes they believe in, ultimately helping to improve their communities. With this history, comes a special responsibility to play a leadership role in corporate volunteerism, and given our global presence of 325,000 employees in 100 countries, Citi is in a unique position to mobilize and maximize the enthusiasm of its employees for volunteerism.
Senior management has traditionally been highly supportive of employees’ volunteer activities, and Citi has spearheaded many successful company-wide volunteer initiatives including Junior Achievement, Habitat for Humanity, Operation Hope, Teach Children To Save, Get Smart About Credit, March of Dimes, and Global Community Day.
The Office of Global Volunteer Initiatives was created in 2003 as Citi recognized that our commitment to and our impact through volunteerism could be even broader. It was conceived as a way to centralize information on volunteer activities, promote volunteerism to our employees, recognize individual and group volunteer efforts, and strategically market volunteer opportunities to help meet community goals.
The Office of Global Volunteer Initiatives, in conjunction with the Citigroup Foundation, Human Resources, and our Office of Financial Education, helps identify and coordinate company-wide volunteer initiatives. The Citi Volunteer Program includes:
Employee Volunteer Day: Active and qualified Citi employees are encouraged to take a paid day off from their job each calendar year to volunteer for the organization of their choice.
Volunteer Incentive Program: Employees who volunteer 50 hours or more during a calendar year with an eligible NGO or nonprofit organization may apply for a $500 grant for that organization. The impact of the employee’s involvement is enhanced through a cash award to the organization.
Volunteer Management System: A multi-dimensional online platform where employees can find and register for volunteer opportunities in their area, and track their volunteer hours. More than 54,000 Citi employees have used this system since it was launched in 2004.
Global Community Day: Every day we foster a culture of volunteerism and encourage our businesses to organize team events that support local communities. But 2006 was historic for Citi. On November 18th, more than 45,000 volunteers in more than 450 cities and 100 countries participated in more than 800 activities to make their communities better. Across time zones and continents, Citi volunteers gave back to the communities where they live and work through a remarkable breadth of activities.
Our next Global Community Day will be on November 17, 2007.
Welfare-to-Work
- Through relationships with organizations such as the Wildcat Service Corporation and partnerships with government programs, Citigroup has hired hundreds of former welfare recipients and placed them in full-time jobs across the United States.
- In addition, through the Citigroup Foundation we have given more than $5.7 million to organizations in 28 states, the District of Columbia, and the U.S. Virgin Islands for employment assistance and job training programs and to help former welfare recipients find and keep full-time employment.