06 oct Scotia Deferred Prosecution Agreement
The TCRC today announced two separate comparisons with Scotiabank in parallel related proceedings. One of Scotiabank`s resolutions with the CFTC relates to the illegal trade in Flaum and the three other merchants that Scotiabank of the CFTC did not fully disclose as part of the PREVIOUS CFTC investigation, which resulted in the 2018 CFTC Resolution that was discussed above. Under the terms of the new agreement between Scotiabank and the CFTC, Scotiabank has agreed to pay approximately US$60.4 million, including a civil fine of $US 42 million and a refund and deposit credited to the division for such payments. The second resolution between Scotiabank and the CFTC refers to certain false statements made by Scotiabank to the CFTC (including in the investigation that led to the 2018 RESOLUTION OF THE CFTC), the COMEX and the National Futures Association. Under this agreement, Scotiabank agreed to pay a civil fine of approximately $US 17 million. The bank has agreed to a Deferred Prosecution (DPA) agreement to end separate investigations by the Department of Justice and the U.S. commodity regulator, the Commodity Futures Trading Commission (CFTC). «This deferred prosecution agreement – which includes a criminal fine at the head of U.S. criminal guidelines, money to compensate victims, and an independent compliance monitor – reflects the seriousness of the offense and the status of Scotiabank`s compliance program and further helps promote the integrity of our government procurement,» Robert Zink, head of the Justice Department`s fraud division.
said in a statement. «Today, Scotiabank recognized its role in a sweeping price manipulation program that aims to distort precious metal futures prices to serve the bank`s best interests,» said Deputy Director william F. Sweeney Jr. of the FBI`s New York Field Office. «The Bank`s action was aimed at encouraging others to act in a way that they would never have had without the activity considered legitimate in the market. Scotiabank`s agreement to remit more than $60 million in fines, levies and compensation for victims underscores the harsh penalties that can be imposed on those who wish to participate in similar and illegal business tactics. «As part of a criminal investigation filed today in the District of New Jersey, Scotiabank has entered into a Deferred Prosecution Agreement (DPA) in which the company is charged with fraud and attempted price manipulation. Under the terms of the CCA, Scotiabank has agreed to the establishment of an independent compliance monitor and will pay more than $60.4 million in criminal fines, criminal indemnities and victim compensation, with a portion of the criminal fine charged to payments to the Commodity Futures Trading Commission (CFTC) under a separate agreement with the CFTC, which will be announced today. As part of the CCA, Scotiabank has agreed to continue to cooperate with the Division in ongoing investigations and prosecutions of underlying misconduct, to amend, as appropriate and appropriate, its compliance program, and to maintain an independent compliance monitor for a period of three years.
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