Citibank 2015 Annual Report Download - page 324

306
PROPERTIES
Citi’s principal executive offices are currently located at 388 Greenwich Street
in New York City and are the subject of a lease and fully occupied by Citi.
Citi also has additional office space at 399 Park Avenue and 601 Lexington
Avenue in New York City under a long-term lease and at 111 Wall Street in
New York City under a lease of the entire building. Citibank leases a building
in Long Island City, New York.
Citigroup Global Markets Holdings Inc.’s principal offices are located at
388 Greenwich Street and 390 Greenwich Street in New York City, which is
also subject to a lease and fully occupied by Citi.
Citigroup’s principal executive offices in EMEA are located at 25 and
33 Canada Square in London’s Canary Wharf, with both buildings subject to
long-term leases. Citi is the largest tenant of these buildings.
In Asia, Citi’s principal executive offices are in leased premises located
at Citibank Plaza in Hong Kong. Citi also has significant leased premises
in Singapore and Japan. Citi has major or full ownership interests in
country headquarters locations in Shanghai, Seoul, Kuala Lumpur,
Manila and Mumbai.
Citi’s principal executive offices in Mexico, which also serve as the
headquarters of Banamex, are located in Mexico City. Citi’s principal
executive offices for Latin America (other than Mexico) are located in
leased premises located in Miami.
Citi also owns or leases over 63 million square feet of real estate in
101 countries, consisting of over 9,400 properties.
Citi continues to evaluate its global real estate footprint and space
requirements and may determine from time to time that certain of its
premises are no longer necessary. There is no assurance that Citi will be
able to dispose of any excess premises or that it will not incur charges
in connection with such dispositions, which could be material to Citi’s
operating results in a given period.
Citi has developed programs for its properties to achieve long-term
energy efficiency objectives and reduce its greenhouse gas emissions to
lessen its impact on climate change. These activities could help to mitigate,
but will not eliminate, Citi’s potential risk from future climate change
regulatory requirements.
For further information concerning leases, see Note 27 to the Consolidated
Financial Statements.
DISCLOSURE PURSUANT TO SECTION 219 OF THE
IRAN THREAT REDUCTION AND SYRIA HUMAN
RIGHTS ACT
Pursuant to Section 219 of the Iran Threat Reduction and Syria Human
Rights Act of 2012 (Section 219), which added Section 13(r) to the Securities
Exchange Act of 1934, as amended, Citi is required to disclose in its annual
or quarterly reports, as applicable, whether it or any of its affiliates knowingly
engaged in certain activities, transactions or dealings relating to Iran or with
individuals or entities that are subject to sanctions under U.S. law. Disclosure
is generally required even where the activities, transactions or dealings were
conducted in compliance with applicable law. Citi has previously disclosed
reportable activities pursuant to Section 219 for the first and second quarters
of 2015 in its related quarterly reports on Form 10-Q.
In addition to Citi’s prior disclosures, a subsidiary of Citi, Banco Nacional
de México (Banamex), identified that it inadvertently processed five domestic
funds transfers to the Embassy of Iran in Mexico during the third quarter of
2015. The total value of these five funds transfers was approximately MXP
3,320 (approximately $177.00). Three of the payments were for visa services
that are exempt under Office of Foreign Assets Control (OFAC) regulations
and two were for consular services that going forward would be permissible
under OFAC General License H for Banamex as a non-U.S. subsidiary of
Citi. The transactions, in aggregate, resulted in approximately MXP 10
(approximately $0.53) in revenue for Banamex.