Fed BNP Paribas Forex manipulation fine was issued yesterday. Fed believes that the French bank was involved in unsafe and unsound practices in Forex market.
18 July, AtoZForex – One of the global banking giants, BNP Paribas, has agreed to pay a fine to the Federal Reserve Bank over Forex manipulation misconduct. The overall sum of the fine accounts for $246m (£188m).
$246M Fed BNP Paribas Forex manipulation fine details
The Paris-headquartered bank has agreed to pay $246 million to the Fed to settle currency manipulation charges. In the official statement, BNP Paribas has stated that it “deeply regrets” the wrongdoing. The US Federal Reserve has stated that the BNP Paribas has been involved in "unsafe and unsound practices in the foreign exchange markets". It alleged that the French bank’s traders have used its electronic chatrooms to communicate with competitors about their trading positions.
Reportedly, the misconduct took place between in the period between 2007 and 2013. In addition, the French banking institution states that it has already taken measures to improve its management oversight and supervision.
Moreover, Fed BNP Paribas Forex manipulation comes as the latest in series of Fed Forex fines for global banks. Previously, the Fed has fined the UBS, Barclays and Deutsche Bank over Forex misconduct. The Fed representatives have commented:
"The board levied the fine after finding deficiencies in BNP Paribas's oversight of, and internal controls over, FX traders who buy and sell US dollars and foreign currencies for the firm's own accounts and for customers.
The firm failed to detect and address that its traders used electronic chatrooms to communicate with competitors about their trading positions. The board's order requires BNP Paribas to improve its senior management oversight and controls relating to the firm's FX trading."
DFS Fines BNP Paribas $350 Million
The ex-trader at BNP Paribas, Jason Katz, has pleaded guilty in the US federal court this January. He has accepted that he was taking parts in a price-fixing conspiracy. In fact, Mr. Katz is the first person to admit criminal misconduct in the Forex case.
The Fed Board has banned Mr. Katz from the banking industry after he pleaded guilty to having colluded with other bankers. The collaboration aimed to rig the exchange rates of the Brazilian real, the Russian Ruble and the South African Rand. BNP Paribas has stated in the official statement:
"BNP Paribas deeply regrets the past misconduct which was a clear breach of the high standards on which the group operates.
Conducting its business in a responsible and ethical manner is a cornerstone of BNP Paribas's values and the group will continue to make improvements to ensure that it delivers on its responsibilities to all its stakeholders."
Consequently, the bank has agreed to pay the fine of $350 million to the New York Department of Financial Services to settle allegations of currency rigging. This case took place back in May 2017.
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