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The Competition Commission says it has reached a settlement agreement with UK-based multinational bank, Standard Chartered Bank ("SCB") in a long-running currency manipulation matter.
BREAKING NEWS: The Commission has reached a landmark settlement agreement with British multinational bank, @StanChart, in which the bank acknowledges and admits to a currency manipulation case and agrees to pay an administrative penalty of R42.7 million.#competitionregulation pic.twitter.com/ftiQNZqPRe
— CompComSA (@CompComSA) November 15, 2023
"SCB participated in the manipulation of the USD/ZAR currency pair by fixing bids; offers; bid-offer spreads; the spot exchange rate; and the exchange rate at the FIX," said Commission spokesperson, Siyabulela Makunga.
He said furthermore, Standard Chartered Bank, participated in dividing markets by allocating customers in terms of which one trader withholds or pulls his or her existing bid or offer from the market to allow another trader to execute and complete their trade in contravention of the Competition Act.
Makungau said the settlement comes at a time when respondent banks are currently appearing before the Competition Appeal Court, seeking an order to set aside a Tribunal order in March this year that respondent banks file their answers to the complaint referral.
He said SCB is one of the 28 banks that are being prosecuted by the Commission for manipulating the currency.
"This settlement ends an eight-year-long litigation between the Commission and SCB over the currency manipulation allegations. Citibank N.A already settled the same conduct with the Commission in 2017."
Competition Commissioner, Doris Tshepe, said they welcome SCB's decision to reach a settlement and encouraged other respondent banks to also consider settling the complaint against them.
