Citigroup and a former unit were fined $1.975 million by the U.S. Securities and Exchange Commission on Thursday for making securities recommendations to retail customers without complying with disclosure obligations.

Neither Citigroup nor the former Citi International Financial Services, a Puerto Rican-based business that the bank sold last year and now known as Insigneo International Financial Services, admitted wrongdoing in agreeing to settle.

The accord resolves claims Citigroup did not comply with Regulation Best Interest when it programmed about 360,000 accounts to receive disclosures electronically without receiving appropriate consent from customers.

(Reporting by Jonathan Stempel in New York; Editing by Chris Reese)