Citibank to pay $5m over SA currency-rigging

Global banking giant Citibank has agreed to pay a fine of 69.5m rand ($5.5m, £4.5m) for its role in a price-rigging scandal that broke in South Africa last month.

Citibank is one of 17 banks which regulators accuse of colluding to manipulate the value of national currency, the rand.

Barclays, JP Morgan and HSBC were among other high-profile banks named as a result of a two-year investigation from the Competition Commission.

It says that the banks used online chat rooms to co-ordinate fictitious bids and offers in order to sway the market.

When the news broke, South Africans took to social media to express their anger at the findings, calling for criminal charges against the banks implicated.

The Competition Commission now wants Citibank to testify against the other financial institutions on their list, which would see them paying a lesser fine than the other banks.

As things stand, the watchdog wants the banks to be fined 10% of in-country annual turnover.

The rand is the highest it has been in almost two years, recovering some of its value after a five-year plunge, as the country went through crisis.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s