Citigroup’s expansion into China has been halted by US regulators, Bloomberg News reports from Reuters

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

The bank is facing delays in setting up a stand-alone securities firm because it has yet to receive a letter of authorization from the US Fed to verify its regulatory status, which is required by Chinese authorities, Bloomberg said.

Citi has been ordered to address its data management issues in-house after being hit with a combined $136 million in fines in July, the report said. The fines make it more difficult to meet China’s licensing rules, he added.

The New York-based bank is continuing talks with China’s securities regulator to set up the business and has no plans to withdraw its application, Bloomberg reported, citing people familiar with the matter, adding that the situation was fluid and would could change.

Citigroup declined to comment on its ongoing process to obtain a license in China, saying the company remains committed to supporting its clients in the country.