Citigroup’s expansion plan in China has hit a roadblock with U.S. regulators after the Federal Reserve imposed a penalty on the bank for its data management and risk controls, Bloomberg News reported on Sunday.

C's efforts to expand into China are held up by the U.S. regulators following a Fed's penalty related to its data and management risk controls.

Citigroup's (NYSE:C) expansion plan in China involving setting up a standalone securities firm is facing delays due to a regulatory roadblock in the U.S., Bloomberg reported, citing people familiar with the matter.

Citigroup Inc.’s expansion plan in China has hit a roadblock with US regulators after the Federal Reserve imposed a penalty on the bank for its data management and risk controls, according to people familiar with the matter.

Citigroup's expansion plans in China have reportedly encountered a setback with U.S. regulators after the Federal Reserve imposed a penalty on the bank for issues related to data management and risk controls.

The fines have hindered the bank's ability to comply with licensing regulations in China. And, to expand its operations into China, the bank needs a clearance letter from the U.S. Federal Reserve.

Citigroup was told to address its data management issues in the US after being fined $136 million in July which has added complications in meeting China's licensing requirements

Citigroup’s expansion plan in China has hit a roadblock with U.S. regulators after the Federal Reserve imposed a penalty on the bank for its data management and risk controls, Bloomberg News reported on Sunday.