A raft of eighteen international banks including Johann Rupert’s ABSA Bank are facing prosecution in South Africa for manipulated manipulating the rand during the global FOREX trading scandal. The banks were involved since 2007 through a general agreement between them, to collude on prices for trades, involving the US dollar/rand currency pair. Absa Bank, Investec, Citibank and Standard Bank are among the implicated financial institutions.
The banks managed to embroil in FOREX fixing mainly because all these banks are managed by the white icons, like Johann Rupert (major shareholder at ABSA Bank), Paul Harris (Founder of Rand Merchant Bank), etc.
BLF is said to have substantial proofs in this pretext that the banks apart from global FOREX fixing scandal were found to be involved in corruption, fraud and money laundering activities relating to price fixing and market division. On the basis of these proofs South Africa’s Competition Commission has listed all these banks to be prosecuted following an investigation into rand manipulation that it began in April 2015.
It said that upon investigation evidences were found which indicated that the banks manipulated prices through agreements to refrain from trading, as well as creating “fictitious” bids and offers at particular times. The eighteen banks are now being booked under FOREX fixing, charges of collusion, corruption and money laundering charges levied on these banks. Here is the list of banks involved:
ABSA Bank Limited
Bank of America Merrill Lynch International Limited
JPMorgan Chase & Co
JP Morgan Chase Bank NA
Standard New York Securities Inc
HSBC Bank Plc
Standard Chartered Bank
Credit Suisse Group
Standard Bank of South Africa Ltd
Australia and New Zealand Banking Group Limited
Nomura International Plc
Macquarie Bank Limited
Barclays Capital Inc
Barclays Bank plc
Citibank N.A (Citibank)
White Banks Has Looted SA By Fixing Bids And FOREX On The Trading Platform
Few of these banks like ABSA concluded collusive agreements in terms of which bids and offers that were fictitious were placed on the trading platforms. These banks had no intention of trading and their actions were aimed at causing the bids and offers to move upwards and downwards.
In between 2007 to 2013, these banks put their bids through their representatives on the trading platform or dealer owned platforms that were fictitious, so as to manipulate the prices of the bids and offers, to drive it upwards or downwards as they pleased in order to increase profits or escape any loss. The banks were also involved in leaking confidential information relating to sale and purchase of FOREX.
Leaked Information Via Coordination On Sale And Purchase Of FOREX
Since 2007 to 2013, all these banks colluded via coordination of their trading activities around the FIX (Financial Information Exchange) and provided each other with the necessary information on how much money was required to sell at a FIX.
Coordination Of Trading
The banks helped each other by manipulating the price of bids and offers through agreements to refrain from trading at particular times, to take turns in transacting and via holding their trading activities.
White Banks Booked Under Prevention and Combating of Corrupt Activities Act 12 of 2004
Black First Land First (BLF) opened criminal cases against banks who have been involved cohesively in collusion, corruption, fraud and money laundering from past decade in terms of the Prevention and Combating of Corrupt Activities Act 12 of 2004. The banks manipulated the markets and illicitly indulged in fixing the price of local currency.
Of lately in 2017, these banks were found refuting the advice of Competition Commission, which referred the case to the Tribunal. The commission has sought an administrative penalty of 10 per cent of the annual turnover for the period between 2007 and 2015 from these banks. Johann Rupert, WMC’s giant, owner of ABSA Bank had plainly denied all accusations, mentioning the Commission has dismissed penalties against it. ABSA is among one of the five main banks of South Africa. There are instances of currency being dodged in December 2015 forcing President Zuma to hire Pravin Gordhan, as Minister of Finance. The entire process drained away R500 billion in just two days. BLF calls it as a massive case of corruption which was swept under the table of WMC and white media. Apart from this, the banks were found embroiling in FOREX fixing in the trading platform.
All these banks have broken the code of conduct by getting involved in global FOREX fixing scandal and have been found to be involved in corruption, fraud and money laundering activities relating to price fixing and market division. BLF has furnished enough proofs, so as to help the South Africa’s Competition Commission and The Tribunal to take necessary action against the above mentioned banks.