Citigroup has been facing several litigations for its accounting improprieties. This has been the cause for severe damage to its reputation globally. To enhance its sagging image and restructure its bottom line, Citibank, under the new leadership of Chuck Prince, has advocated a new set of cultural values and ethics to create greater transparency in corporate governance.

Citigroup, the world's largest financial services company, whose core value is reporting results with accuracy and objectivity, has been facing various regulatory pressures and litigations from investigative agencies for its involvement in a variety of accounting improprieties. It was accused of inappropriate transaction (including unauthorized selling of securities), myopic views for generating short-term profit, for exploiting its status in Europe, making structured finance for Enron, underwriting of bonds for WorldCom, use of inappropriate means for allocating IPO, and predatory lending to retail customers. Due to these prosecution and litigation risks, Sandy Weill's (CEO, Citigroup) credibility was lost. Chuck Prince, a topnotch lawyer, known for his integrity succeeded Sandy Weill on October 1, 2003. Since his succession, Citibank is on a sticky wicket, facing an identity crisis of sorts by struggling on three distinct fronts, namelyscandals, a declining bottom line on revenues, and the plummeting of stocks globally. To enhance its sagging image and reorganize its bottom line, Citibank advocated new sets of training and development, communication and performance review initiatives under the leadership of Chuck Prince. Furthermore, Prince is trying to establish a new set of cultural values and ethics for effective corporate governance to maintain Citibank's dominance amongst global financial institutions. His accession is seen as a panacea for improving corporate governance, but whether he is successful in eliminating the deep-rooted corruption which is plaguing the system of governance is a matter of great concern.

Citigroup has been accused of money laundering activities in Mexico by acting in connivance with various drug lords of the region. It created a special relationship with those `wealthiest customers' and gave them privileged access in transferring of funds. It helped Raul Salinas, brother of former Mexican President Carlos Salinas de Gortari, by transferring $90 to $100 mn out of Mexico to New York. The destination and source of funds transfer was disguised by setting up a separate offshore corporation which gave special and privileged access to Salinas by providing a secret code name. A fiduciary third party intermediary deposited the money in a Citibank account in Mexico and later transferred the money to New York, from where it was directed to Switzerland and London. Later, in March 1995, Salinas was arrested in Mexico for his involvement in the illegal transfer of funds.