US: Standard Chartered fined US$40M for forex rigging

New York Department of Financial Services (DFS) has fined Standard Chartered Bank US$40 million for attempting to rig transactions in foreign exchange markets between 2007 and 2013.

This consent order marks the last in a series of DFS consent orders that follow a detailed investigation of manipulation in the foreign exchange markets. With respect to January 30’s action, the investigation by DFS, as well as an internal review by the bank, found that bank traders used a range of illegal tactics to maximize profits or minimize losses at the expense of the bank’s customers or customers at other banks.

Under the consent order with DFS, Standard Chartered admitted that it failed to implement effective controls over its foreign exchange business, which is conducted at its London headquarters and in other global financial centers, including at its New York branch.

“The integrity of the global financial system is compromised when the hunger for profit leads bankers and traders to turn a blind eye to the kind of illicit activities uncovered by DFS’s broad investigation,” DFS superintendent Maria Vullo said. “DFS appreciates Standard Chartered’s cooperation in this matter and the bank’s acknowledgement of its critical obligation to ensure that its business is conducted lawfully.”