Citi faces fine on derivatives deals

Citigroup is expected to be fined $600,000 (379,000 pounds) by the Financial Industry Regulatory Authority over derivatives transactions that helped foreign clients avoid taxes on dividends, a source familiar with the matter said on Sunday.

The fine is expected to be announced on Monday, the source said, declining to be identified because it is not yet public.

The development comes as governments around the world crack down on tax evasion as they look to close widening budget gaps fuelled by economic weakness.

The centerpiece of the U.S. tax recovery effort has been its legal case against Swiss banking giant UBS AG, which earlier this year agreed to pay $780 million to settle criminal claims that it helped U.S. citizens evade taxes.

A Citigroup representative was not immediately available for comment.

FINRA declined to comment.

The Financial Times first reported the news.