Monday, July 17, 2017 - BNP Paribas fined US$246m for forex misconduct

BNP Paribas
Source - https://www.ft.com/content/ad5515d1-dbeb-393a-b706-a5b2b51e4140
Where - United States of America
Cost - 246,000,000 USD
Business line - Trading and Sales
Copyright © Financial Times (www.ft.com) 2017

The US Federal Reserve Board (FRB) has announced this week it will fine BNP Paribas US$246m for unsafe and unsound practices in currency markets.

The FRB levied the fine after finding deficiencies in BNP Paribas's oversight and internal controls over forex traders who buy and sell US dollars and foreign currencies for the firm's own accounts and on behalf of its customers.

According to a statement released by the FRB, BNP Paribas failed to detect or address that its traders used online chatrooms to communicate with competitors about their trading positions.

In addition to the fine, the bank has been ordered to improve its senior management oversight and controls of its forex trading arm.

In January 2017, former BNP Paribas trader Jason Katz received an industry ban for manipulating currency prices. The bank is now banned from re-employing anyone involved in the misconduct.

BNP Paribas said in a statement it would be able to cover the cost of the fine with provisions already set aside. “BNP Paribas deeply regrets the past misconduct, which was a clear breach of the high standards on which the group operates,” it added. The bank also claims it has since “proactively implemented extensive measures to strengthen its systems of control and compliance.”