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’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 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.

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 Inc.’s C plan to expand in China has met a snag with the U.S. regulators after the Federal Reserve imposed a penalty on the bank related to its data management and risk controls, per a Bloomberg report.

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.