Standard Bank‚ Absa Bank and many foreign owned banks have been referred to the Competition Tribunal for price fixing.
This move by the Competition Commission allows the banks to be fined up to 10% of their annual turnover.
The Competition Commission said in its press release that it has been investigating allegations that from 2007 currency traders who were buying and selling US dollars in exchange for rand had fixed the price.
They did this allegedly by making fictitious sales to drive up demand and change prices‚ or agreeing not to trade for a period of time.
The commission said the traders also assisted each other to reach the desired prices by coordinating trading times.
It said it wanted the banks to be prosecuted and fined.
“The Commission is seeking an order from the Tribunal declaring that the respondents have contravened the Competition Act‚” it said.
“Further‚ the Commission is seeking an order declaring that the Bank of America Merrill Lynch International Limited‚ BNP Paribas‚ JP Morgan Chase & Co‚ JP Morgan Chase Bank N.A‚ Investec Ltd‚ Standard New York Securities Inc.‚ HSBC Bank Plc‚ Standard Chartered Bank‚ Credit Suisse Group; Standard Bank of South Africa Ltd‚ Commerzbank AG; Australia and New Zealand Banking Group Limited‚ Nomura International Plc.‚ Macquarie Bank Limited are liable for the payment of an administrative penalty equal to 10% of their annual turnover.
“The referral of this matter to the Tribunal marks a key milestone in this case as it now affords the banks an opportunity to answer for themselves‚” said the Commissioner‚ Tembinkosi Bonakele.