Global Citizenship Report 2017

Fair lending practices are a key component of our commitment to treating customers fairly, and in 2017 we updated our U.S. Fair Lending Policy to provide clearer and more specific guidance on consumer protection. The U.S. Fair Lending Policy establishes the guiding principles and minimum standards for fair, equitable, and nondiscriminatory access to credit. It prohibits discrimination against actual or prospective clients on the basis of race, sex, religion or other “nonrisk” factors. Our 2017 update to the policy clarifies that the prohibition against discrimination based on “sex” includes sexual orientation and gender identity, in addition to gender. Trainings related to the policy were updated to reflect this clarification. Taxation Policies and Standards Citi operates in nearly 100 countries and strictly abides by all tax laws in the U.S. and throughout the world. We are a current income tax payer, both within and outside the U.S. Our tax profile is consistent with the locations of our busi- ness operations, and our review and escalation processes enable us to adhere to high standards of compliance with applicable tax laws. We emphasize strong internal controls and transparency with global tax authorities and share information relevant to our tax profile. We supplement this transparency with additional country-by-country reporting, which is required under the Organisation for Economic Co-operation and Development (OECD) action plan to address base erosion and profit shifting. Citi complies with reporting and withholding requirements imposed globally on financial institutions in connection with customer transactions they intermediate. We have imple- mented systems and processes to comply with the Foreign Account Tax Compliance Act and are phasing in compli- ance with the Common Reporting Standard as it becomes law in approximately 90 countries. Citi has implemented the Common Reporting Standard in all applicable 2016 early-adopting countries where local implementing guid- ance has been issued. Similarly, we have a firmwide policy applicable to customer transactions under which Citi will only engage in a transaction where there is a high degree of certainty that any tax aspects will be accepted by the respective taxing authorities. In December 2017, the U.S. President signed into law the Tax Cuts and Jobs Act of 2017, which fundamentally changes the method of taxation of international income earned by Citi beginning in 2018. We have studied the provisions of the new tax rules and how they apply to Citi, and will continue to apply the same consistent, transparent and responsible approach to tax compliance and governance discussed above. For more information on the impact of tax reform on Citi, see our Fourth Quarter 2017 Results and Key Metrics. CITI’S FAIRNESS PRINCIPLES 1. WORKS AS DESCRIBED Customers can predict how the product or service will work 2. APPROPRIATE Global Consumer Banking provides products and services that are appropriate for its customers, and customers can rely on the bank to offer products that match their needs 3. VALUE Customers receive value that is reasonably related to the cost of the product or service 4. EASE OF UNDERSTANDING Customers understand the terms and conditions of the product or services (particularly any limitations or exclusions) 22