Unethical currency trading draws attention
Recently, the Competition Commission of South Africa revealed that it was investigating claims of collusion in the financial sector.
Seventeen commercial banks were implicated in rigging the exchange rate of the rand against the US dollar.
In Namibia, finance minister Calle Schlettwein said the situation was receiving the necessary attention.
The Bank of Namibia also announced that it would closely follow proceedings in South Africa.
DTA president McHenry Venaani had asked Schlettwein to comment on the scandal. Schlettwein in response asked for more time to seek advice on the matter and respond to Venaani's query.
Standard Bank is the only local bank with ties to the South African banks under investigation.
Releasing a statement recently, Standard Bank South Africa said: “In April 2015 the South African Competition Commission announced that it had initiated a complaint against Standard New York Securities Inc (SNYS) and 21 other institutions concerning possible contravention of the Competition Act in relation to USD/ZAR trading between 2007 and 2013. No mention was made of SBSA.
“On 15 February 2017 the Competition Commission lodged five complaints with the Competition Tribunal against 18 institutions, including SBSA and SNYS, in which it alleges unlawful collusion between those institutions in the trading of US$/R. SBSA only learned of the complaints at this time and is alleged to have been implicated in one and SNYS in two, of the five complaints.
“SBSA and SNYS are engaging with the Competition Commission to better understand the basis for the complaints and the appropriate response. Pending the outcome of these engagements and in the light of these historic allegations only having been brought to SBSA's attention on 15 February, no suspension of current employees of SBSA has taken place,” it said.
“Standard Bank Group considers these allegations in an extremely serious light and remains committed to maintaining the highest levels of control and compliance with all relevant regulations. The allegations are confined to US$/R trading activities within SBSA and do not relate to the conduct of the Group more broadly,” the bank stated.
STAFF REPORTER
Seventeen commercial banks were implicated in rigging the exchange rate of the rand against the US dollar.
In Namibia, finance minister Calle Schlettwein said the situation was receiving the necessary attention.
The Bank of Namibia also announced that it would closely follow proceedings in South Africa.
DTA president McHenry Venaani had asked Schlettwein to comment on the scandal. Schlettwein in response asked for more time to seek advice on the matter and respond to Venaani's query.
Standard Bank is the only local bank with ties to the South African banks under investigation.
Releasing a statement recently, Standard Bank South Africa said: “In April 2015 the South African Competition Commission announced that it had initiated a complaint against Standard New York Securities Inc (SNYS) and 21 other institutions concerning possible contravention of the Competition Act in relation to USD/ZAR trading between 2007 and 2013. No mention was made of SBSA.
“On 15 February 2017 the Competition Commission lodged five complaints with the Competition Tribunal against 18 institutions, including SBSA and SNYS, in which it alleges unlawful collusion between those institutions in the trading of US$/R. SBSA only learned of the complaints at this time and is alleged to have been implicated in one and SNYS in two, of the five complaints.
“SBSA and SNYS are engaging with the Competition Commission to better understand the basis for the complaints and the appropriate response. Pending the outcome of these engagements and in the light of these historic allegations only having been brought to SBSA's attention on 15 February, no suspension of current employees of SBSA has taken place,” it said.
“Standard Bank Group considers these allegations in an extremely serious light and remains committed to maintaining the highest levels of control and compliance with all relevant regulations. The allegations are confined to US$/R trading activities within SBSA and do not relate to the conduct of the Group more broadly,” the bank stated.
STAFF REPORTER
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