Citigroup Inc. is currently under investigation by several US government agencies due to its alleged connections with Suleiman Kerimov, a sanctioned Russian billionaire. The probe, reported by Bloomberg News, involves the Department of Justice, the Federal Bureau of Investigation, and the Internal Revenue Service. These agencies are scrutinizing Citigroup's involvement with Heritage Trust, a Delaware-based entity that holds assets for Kerimov.

Kerimov, who has been sanctioned by the US since 2014 due to Russia's actions in Syria and Ukraine, is accused of using a network of relatives and advisors to invest in US companies. The US Treasury Department had previously blocked Kerimov from accessing assets worth $1 billion from Heritage Trust in 2022.

The investigation is also examining Citigroup's anti-money laundering policies and its systems for preventing financial crimes. This scrutiny comes amid broader concerns about Citigroup's risk management practices, which have led to penalties in the past. In July, the Federal Reserve fined Citigroup $136 million for insufficient progress in resolving previous compliance issues.

Citigroup has stated its commitment to compliance with all applicable laws and regulations and is in the process of winding down its institutional banking operations in Russia. The bank's CEO, Jane Fraser, faces significant challenges in addressing these regulatory issues as she works to steer the company through these turbulent times.

Suleiman Kerimov, ranked as the 230th-richest person globally with a net worth of $10.7 billion, has been a controversial figure due to his financial dealings and ties to the Russian government. His investments include stakes in major companies like Gazprom, Morgan Stanley, and Polyus, Russia's largest gold producer.