Andrea Gacki, the director of FinCEN – the Treasury bureau responsible for combating money laundering, sanctions evasion, and financial crime – is leaving government service to become Citi’s Global Head of Sanctions.
Perhaps everything about this complies with the applicable ethics rules, not that it would matter in Trumplandia anyway.
But Citi isn’t just any bank. It has spent years operating under major regulatory consent orders related to deficiencies in risk management, data governance, internal controls, and compliance. In 2020, the OCC and Federal Reserve imposed sweeping enforcement actions and a $400 million penalty. In 2024, regulators levied another $135.6 million in penalties after concluding Citi had not made sufficient progress addressing those same issues. Some enforcement actions have since been lifted as remediation progressed, while others have remained in place.
Against that backdrop, hiring the sitting head of FinCEN raises an important question about the revolving door between regulators and the institutions they oversee can undermine public confidence.
Even if everyone involved acts with complete integrity – something Citi routinely does not do – appearances matter. Public trust depends not only on actual independence, but on the perception that our regulators are independent.
Wall Street often asks why so many people believe there is one set of rules for powerful institutions and another for everyone else. Announcements like this don’t help answer that question in the industry’s favor.
Healthy markets require strong regulators. Healthy democracies require citizens who believe those regulators are working exclusively in the public interest. The faster the revolving door spins, the harder that confidence becomes to maintain.
https://www.bankingdive.com/news/andrea-gacki-citi-sanctions-head-fincen-treasury/826718