Holistic investigation has exposed  a South African bank involved in illegal financial transaction, since 2007. The comprehensive investigation also revealed other startling information about the bank.

According to the Competition Commission filed with the Competition Tribunal a settlement agreement reached with Citibank NA for being part of the forex trading cartel.

The Commission found that from at least 2007, Citibank and its competitors had a general agreement to collude on prices for bids, offers and bid-offer spreads for the spot trades in relation to currency trading involving US dollar/rand currency pair.

Further, the Commission found that Citibank and its competitors manipulated the price of bids and offers through agreements to refrain from trading and creating fictitious bids and offers at particular times.

Citibank will pay an administrative penalty of R69 500 860.

This figure does not exceed 10% of Citibank’s annual turnover in the Republic of South Africa. Citibank undertook to cooperate with the Commission and avail witnesses to assist the prosecution of the other banks that colluded in this matter.

On 15 February 2017, the Competition Commission referred a collusion case to the Competition Tribunal for prosecution  against Bank of America Merrill Lynch International Limited,  BNP Paribas, JP Morgan Chase & Co, JP Morgan Chase Bank N.A, Investec Ltd, Standard New York Securities Inc., HSBC Bank Plc, Standard Chartered Bank, Credit Suisse Group; Standard Bank of South Africa Ltd, Commerzbank AG; Australia and New Zealand Banking Group Limited, Nomura International Plc., Macquarie Bank Limited, Citibank N.A., ABSA Bank Limited (ABSA), Barclays Capital Inc, Barclays Bank plc (Respondents).