CFTC fines two banks for swap reporting violations
The Commodity Futures Trading Commission announced enforcement actions in September against Deutsche Bank and Australia and New Zealand Banking Group for failing to properly report swap transactions. Both banks agreed to settle the cases and pay fines without admitting or denying the CFTC’s findings.
In the case against Deutsche Bank, the bank agreed to pay a $2.5 million penalty to settle charges that the firm failed to properly report its swaps transactions from January 2013 until July 2015. Deutsche Bank provided “significant cooperation” with the investigation, the CFTC said, including undertaking an internal investigation, self-reporting, taking corrective actions and increasing its internal controls.
The CFTC said this was its first action enforcing Dodd-Frank regulations calling for real-time public reporting of swap transactions and the reporting of swap data to swap data repositories. “This is another in a series of cases the CFTC has brought this year highlighting the importance of complete and accurate reporting,” said Aitan Goelman, the CFTC’s director of enforcement.
In the case against Australia and New Zealand Banking Group, the bank agreed to pay a $150,000 penalty to settle charges that the firm failed to submit accurate large trader reports for physical commodity swap positions.
The CFTC said that this was its first enforcement case related to new large trader reporting requirements established under Dodd-Frank.
