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 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'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.