Citigroup is to be fined over derivatives transactions that were partly designed to help foreign clients avoid taxes on dividends, in a move that could herald a wider crackdown against US banks that used similar strategies. The $600,000 fine by the Financial Industry Regulatory Authority, which oversees broker-dealers, comes after the US hardened its stance on offshore tax operations and targeted complex derivatives deals that it alleges help offshore US bank clients avoid US taxes.

This entry was posted by Gwen Robinson on Monday, October 12th, 2009 at 4:57 and is filed under Capital markets. Tagged with citi. Edit this entry.