Published On: Mon, Feb 20th, 2017

Citibank to pay R69 million in banks collusion saga

CitibankJOHANNESBURG, (CAJ News) – CITIBANK N.A will pay a fine of over R69,5 million ( USD 5,3 million ) following a settlement agreement with the Competition Commission over the bank’s involvement in a forex trading cartel.
The Commission found that from at least 2007, Citibank N. 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 N.A. 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.
The figure Citibank N.A will pay does not exceed 10 percent of its annual turnover in South Africa.
Citibank N.A. undertook to cooperate with the Competition Commission and avail witnesses to assist the prosecution of the other banks that colluded in this matter.
“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.
CAJ News

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