Competition Commission urges full disclosure from all involved price fixing saga
The commission found that 18 financial institutions have been involved in manipulating the rand/dollar exchange rate.
JOHANNESBURG - The Competition Commission has encouraged full disclosure from all involved in a forex trading cartel.
On Monday, Citibank reached a settlement with the commission, which found that 18 financial institutions have been involved in manipulating the rand/dollar exchange rate.
It has agreed to pay a penalty of more than R69 million.
Citibank has agreed to provide witnesses to help expose others implicated in foreign exchange fraud.
Reports say a few local traders have already been suspended including two working for Absa Bank.
In the United States, Barclays’ Jason Katz and Citigroup’s Christopher Cummins have already pleaded guilty to price manipulation after an extensive investigation by the Justice Department.
Old Mutual strategist Graham Bell says there needs to be full disclosure.
“I think the issue is how far up does it go and should management have known about it?”
The matter has now been referred to the Competition Tribunal with the Competition Commission recommending that banks found liable pay up to 10% of annual revenue.
(Edited by Shimoney Regter)