Australian banks fined for trying to manipulate Malaysian currency

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anz-branchAustralia and New Zealand Banking Group (ANZ) and Macquarie on November 25 admitted that they attempted to manipulate the benchmark rate of the Malaysian ringgit and agreed to pay a total of A$15 million in fines.

ANZ admitted to the Federal Court ten instances of attempted cartel conduct and Macquarie to eight related to setting the daily rates for derivative instruments linked to Malaysia’s currency in 2011. ANZ will pay A$9 million penalty and Macquarie A$6 million.

The manipulation came to light when the Australian Competition and Consumer Commission (ACCC) presented facts to the court. These included proof that a Macquarie trader regularly contacted traders from ANZ and other Singapore-based banks in private online chat rooms about daily submissions in relation to the benchmark rate for the Malaysian ringgit.

“On various dates in 2011, traders employed by ANZ and the Macquarie trader attempted to make arrangements with other banks that particular submitting banks would make high or low submissions in relation to the Malaysian ringgit fixing rate,” the ACCC said.

The Federal Court now needs to determine if the penalties are appropriate.

ANZ said in a statement the three ANZ traders involved no longer worked for the company.

“We accept responsibility and apologise for the actions of our former employees,” said ANZ Chief Risk Officer Nigel Williams.

Macquarie, for its part, said one junior employee was involved, who no longer worked for the bank.

 

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Australia and New Zealand Banking Group (ANZ) and Macquarie on November 25 admitted that they attempted to manipulate the benchmark rate of the Malaysian ringgit and agreed to pay a total of A$15 million in fines. ANZ admitted to the Federal Court ten instances of attempted cartel conduct and Macquarie to eight related to setting the daily rates for derivative instruments linked to Malaysia's currency in 2011. ANZ will pay A$9 million penalty and Macquarie A$6 million. The manipulation came to light when the Australian Competition and Consumer Commission (ACCC) presented facts to the court. These included proof that a...

Reading Time: 1 minute

anz-branchAustralia and New Zealand Banking Group (ANZ) and Macquarie on November 25 admitted that they attempted to manipulate the benchmark rate of the Malaysian ringgit and agreed to pay a total of A$15 million in fines.

ANZ admitted to the Federal Court ten instances of attempted cartel conduct and Macquarie to eight related to setting the daily rates for derivative instruments linked to Malaysia’s currency in 2011. ANZ will pay A$9 million penalty and Macquarie A$6 million.

The manipulation came to light when the Australian Competition and Consumer Commission (ACCC) presented facts to the court. These included proof that a Macquarie trader regularly contacted traders from ANZ and other Singapore-based banks in private online chat rooms about daily submissions in relation to the benchmark rate for the Malaysian ringgit.

“On various dates in 2011, traders employed by ANZ and the Macquarie trader attempted to make arrangements with other banks that particular submitting banks would make high or low submissions in relation to the Malaysian ringgit fixing rate,” the ACCC said.

The Federal Court now needs to determine if the penalties are appropriate.

ANZ said in a statement the three ANZ traders involved no longer worked for the company.

“We accept responsibility and apologise for the actions of our former employees,” said ANZ Chief Risk Officer Nigel Williams.

Macquarie, for its part, said one junior employee was involved, who no longer worked for the bank.

 

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