Bank Indonesia (BI) has released its findings on an assessment of Citibank’s priority banking and credit card services, saying that the firm violated various banking regulations, therefore warranting penalties.
In a statement issued on Friday, BI says Citibank may not accept new customers for its priority banking service, known as Citigold, for one year and can no longer issue new credit cards for two years.
“These sanctions apply as of May 6. Should new violations emerge during further investigations, the sanctions may be reviewed,” the statement says.
BI also forbids Citibank from using third-party debt collection services for two years until it improves its debt collection management system.
Previously on May 29, BI ordered 23 banks to suspend the acceptance of new clients for premium service programs for one month starting Monday.
The move follows revelations of alleged embezzlement by a former premium services provider at Citibank, senior customer relations manager Melinda Dee, who allegedly siphoned billions of rupiah from clients’ accounts.
At almost the precise time of the exposure of the Melinda case, BI began investigating Citibank for the death of one client, Irzen Octa, who was found dead on March 29 after meeting officials from the firm’s third-party debt collection team.
The Jakarta Post, Jakarta | Fri, 05/06/2011 4:21 PM |
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