France’s BNP Parbias has been slapped with another fine over its foreign-exchange trading business, announcing on Monday that it would pay the Federal Reserve Board $246m after the regulator found “deficiencies” in its oversight and internal controls of traders in the unit.
The same issues were at the centre of a $350m fine levied in May against it by New York’s state banking regulator.
BNP Paribas said in a statement that the fine would be fully covered by existing provisions.
“BNP Parbias deeply regrets the past misconduct, which was a clear breach of the high standards on which the group operates,” it said. The French bank noted that it has “proactively implemented extensive measures to strengthen its systems of control and compliance” since the conduct in question took place, between 2007 and 2013
The Fed said that BNP and certain of its US subsidiaries had failed to detect and address its traders’ use of electronic chatrooms to discuss their positions in the market for US dollars and other foreign currencies. BNP will be required to bolster senior management oversight and tighten controls over its trading in forex markets. It is also barred from re-hiring people who were involved in the conduct at issue.
In January, the Fed permanently barred BNP Paribas trader Jason Katz from participating in the banking industry. Mr Katz pleaded guilty the same month to participating in a price-fixing conspiracy in the forex markets.
Other banks have faced billions of dollars for fines for allowing traders to try to influence prices in FX markets, which have sparked multiple civil settlements and criminal probes in both the US and UK.