Today`s orders come about two years after the CFTC first sanctioned BNS for spoofing in the gold and silver futures markets. [See CFTC press release 7818-18]. The order demanded a us$800,000 fine from BNS for the machining of the precious metal bank`s office in New York from June 2013 to June 2016. In this order, the CFTC expressly recognized BNS for self-reporting and cooperation in the form of a significantly reduced sentence and paid tribute to it. Since the date of the underlying breach, Scotiabank has made significant investments to improve its compliance technology and commercial monitoring tools, nearly doubled its annual compliance budget, added more than 200 full-time equivalents to meet compliance items, and is in the process of terminating its precious metals business. However, the Department ultimately recognized the need for independent compliance control, as Scotiabank`s improvements to its compliance and ethics program have not yet been fully implemented and tested to demonstrate that they would effectively recognize and prevent such misconduct in the future. In a separate complaint, the Department of Justice`s Fraud Department today announced that it has received an agreement on late prosecutions with BNS in a parallel case that delayed the criminal prosecution of BNS for attempted manipulation and fraud. Under the agreement, BNS agreed, among other things, to pay $60.4 million, representing the appropriate combined amounts of penalties, recoveries and refunds in this file, and to fulfill certain obligations related to its business compliance program, including the maintenance of an independent compliance monitor. About ScotiabankScotiabank is a leading bank in North and South America. Guided by our goal of “for every future,” we help our clients, their families and communities succeed through a wide range of advice, products and services, including private and commercial banks, asset management and private banking, corporate and investment banking, and capital markets. With a team of approximately 97,000 employees and a fortune of more than $1.2 trillion (as of April 30, 2020), the Bank of Scotia on the Toronto Stock Exchange (TSX: BNS) and the New York Stock Exchange (NYSE: BNS) trades.
For more information, visit www.scotiabank.com and follow us on Twitter @ScotiabankViews. For more than eight years, four Scotiabank traders have placed thousands of illegitimate orders for precious metal futures to manipulate prices – a practice known as spoofing – to use itself and the bank, according to the authorities. Scotiabank was preparing to pay the fines by setting aside money in previous quarters, he said in a statement wednesday. A number of relevant considerations contributed to the Department`s criminal decision with Scotiabank, including the nature and seriousness of the offence, Scotiabank`s compliance program and Scotiabank`s failure to fully and voluntarily disclose the offence to the Division. “Between August 2013 and February 2016, three Scotiabank compliance officers provided information on illegal trade by one of the … but does not prevent the illegal behaviour of the same trader from continuing,” the ministry said. Scotiabank did not receive a voluntary disclosure credit because it did not voluntarily disclose the division`s tort in time. In 2016, after one of its futures merchants marked Flaum`s trade due to possible spoofing, Scotiabank made a voluntary disclosure to the CFTC regarding down.