Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

South African watchdog fines Citi 69.5 million rand to settle currency rigging probe

Published 20/02/2017, 16:11
Updated 20/02/2017, 16:11
© Reuters. A view of the exterior of the Citibank corporate headquarters in New York, New York

© Reuters. A view of the exterior of the Citibank corporate headquarters in New York, New York

JOHANNESBURG (Reuters) - South Africa's Competition Commission has fined the local arm of Citigroup (N:C) 69.5 million rand (£4.2 million) for its role in a foreign currency trading cartel, the regulator said on Monday.

The Competition Commission said last week that it had found that traders at more than a dozen local and foreign banks colluded to coordinate trading in the South African and U.S. currencies.

The Commission said it had set the fine for Citi Bank NA South Africa at less than 10 percent of its annual turnover after the bank "undertook to cooperate with the Commission."

Following the announcement of the settlement Citibank N.A. South Africa said that it aimed to improve its internal systems and monitoring processes.

"Citi is pleased that the matter has been settled. We will continue building upon the changes that we have already made to our systems, controls, and monitoring processes. Fostering a culture of ethical behaviour has been, and continues to be, a top priority for Citi."

The Commission alleged that from at least 2007 traders at Citibank N.A. 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 the dollar and rand currency.

The Commission said traders manipulated the price of bids and offers through agreements to refrain from trading and creating fictitious bids and offers at particular times.

"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.

Two sources with direct knowledge of the matter told Reuters on Friday that Citibank and Barclays Plc (L:BARC) had approached the competition regulator with information relating to the alleged rigging of the rand's exchange rate. Barclays said on Friday it was cooperating with the regulator.

© Reuters. A view of the exterior of the Citibank corporate headquarters in New York, New York

No one at the Commission was immediately available on Monday to comment on whether it had also reached a settlement with Barclays.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.