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.

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.

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’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.

VCG. US banking institution Citigroup has been working to set up a standalone securities firm in China, but it "has hit a roadblock with US regulators after the

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.