The regulators said Citigroup needs to address weaknesses in how it manages financial data.
In a letter to the New York-based bank, the Federal Reserve and the Federal Deposit Insurance Corporation said the bank's issues could hurt its ability to produce accurate reports in times of duress.
Part of the reforms that emerged from the 2008 financial crisis required the biggest and most important U.S. banks to submit detailed plans to explain how they can be quickly unwound. Six companies, including Bank of America, Wells Fargo and Morgan Stanley, were found to have weaknesses in their ability to produce data, but the firms addressed those concerns.
The regulators said Citigroup was the only bank that had a shortcoming in its resolution plan.
After an embarrassing incident that helped accelerate the retirement of Fraser's predecessor, Citigroup is struggling to improve its systems. One of Fraser's main priorities was to address regulators' concerns.
Concerns over the quality of Citigroup's data management systems were raised earlier. Regulators hit the bank with a $400 million fine and demanded improvements to its risk management, data and internal controls.
The agencies told Citigroup that issues with the Covered Company's data governance program could affect the firm's ability to produce timely and accurate data.
The company has to come up with a solution by January.
Citigroup said it was committed to addressing the shortcoming in its resolution plan.
"As part of the transformation Citi has embarked upon, we are making significant investments in our data integrity and data management." We acknowledge there is much more work to be done and we will use that work to fix it.
Citigroup's shares fell in the early going.
CNBC's Jeff Cox