Citibank to pay massive fine in SA currency trading collusion scandal
The Competition Commission says it has filed with the Competition Tribunal a settlement agreement reached with Citibank for being part of the forex trading cartel.
Three South African banks were implicated among 17 banking groups in ‘widespread’ collusion relating to the the price-fixing of the rand.
Following an almost two-year investigation into the matter, the Competition Commission last week referred the collusion case to the Competition Tribunal for prosecution.
In a press statement on Monday (20 February), the commission said it found that from at least 2007, Citibank and its competitors had a general agreement to collude on prices for bids, offers and bid-offer spreads for the spot trades in relation to currency trading involving US dollar/rand currency pair.
“Further, the commission found that Citibank and its competitors manipulated the price of bids and offers through agreements to refrain from trading and creating fictitious bids and offers at particular times.”
Read: Head traders and directors named in SA banking collusion scandal
Citibank, the commission said, will pay an administrative penalty of R69,500,860.
This figure does not exceed 10% of Citibank’s annual turnover in the Republic of South Africa, it said. “Citibank undertook to cooperate with the Commission and avail witnesses to assist the prosecution of the other banks that colluded in this matter,” the commission said.
“This settlement was done to encourage speedy settlement and full disclosure to strengthen the evidence for prosecution of the other banks,” said the commissioner, Tembinkosi Bonakele.
The 17 banks implicated include:
- Bank of America Merrill Lynch International
- BNP Paribas
- JP Morgan Chase & Co
- JP Morgan Chase Bank
- Investec
- Standard New York Securities
- HSBC Bank
- Standard Chartered Bank
- Credit Suisse Group
- Standard Bank of South Africa
- Commerzbank AG
- Australia and New Zealand Banking Group
- Nomura International
- Macquarie Bank
- ABSA Bank Limited (ABSA)
- Barclays Capital
- Barclays Bank
Read: 3 South African banks face massive fines for price-fixing and collusion
Loading ...