PNB Paribas S.A. agrees to CMP for deficient FX controls
The Federal Reserve Board on Monday announced that it will fine BNP Paribas S.A. (Paris, France) and certain of its U.S. subsidiaries $246,375,000 for the firm's unsafe and unsound practices in the foreign exchange (FX) markets.
The Board levied the fine after finding deficiencies in BNP Paribas's oversight of, and internal controls over, FX traders who buy and sell U.S. dollars and foreign currencies for the firm's own accounts and for customers. The firm failed to detect and address that its traders used electronic chatrooms to communicate with competitors about their trading positions. The Board's order requires BNP Paribas to improve its senior management oversight and controls relating to the firm's FX trading.