- Investigation has been going on for five years
- Maximum fine could be 10% of international turnover
- Various other banks also being investigated on similar charges
The latest news from the Eurozone forex front is that European Union antitrust regulators have charged Credit Suisse with rigging foreign exchange rates, according to a statement issued by the Swiss bank yesterday.
This could be an indication that the five-year investigation might reach a final conclusion soon, perhaps before the end of this year.
In its latest quarterly report, Credit Suisse said the European Commission served it with a notification on July 26 claiming that the bank “engaged in anti-competitive practices in connection with its foreign exchange trading business”.
EU enforcers typically provide the business concerned with a list of charges of illicit acts it was allegedly involved in before slapping it with fines that can be as much as 10% of its international turnover.
The European Commission has not yet commented on the issue.
Individuals close to the issue told Reuters that more than one bank is being investigated by the European Commission on suspicions that they manipulated forex rates. Several of them are reportedly prepared to admit wrongdoing if their fines are reduced. The names of the companies involved have so far not been divulged.
In a 2017 regulatory filing, HSBC stated that the EU was investigating its forex activities.
According to a regulatory filing last year, BNP Paribas has also been served with a questionnaire by the European Commission about the possibility that certain financial institutions might have colluded to manipulate specific forex exchange rates.
Other banks have also confirmed that they were being investigated by different competition agencies.
Over the last few years, the Commission has dealt out large fines to several banks for manipulating benchmark interest rates.
