No criminal sanction against errant banks

The banks and individual traders identified in the Competition Commission’s referral to the Competition Tribunal do not face the prospect of criminal sanction by the competition authorities even if found guilty of price-fixing and market manipulation in the foreign exchange market, says a Business Day report. The Competition Act was amended with effect from May 2016 to provide for criminal sanctions to be imposed on individuals for certain competition law contraventions such as those identified in the commission’s referral. However, the contraventions identified by the commission took place between 2007 and 2013, predating the introduction of criminal sanction. Because it cannot pursue criminal sanction, the commission is expected to push hard for the maximum possible fine, notes the report. The banks that have been charged by the commission have 20 days from the date of referral to respond to the charges. Given the complexity of the matter it is likely that all the banks will request an extension, suggests Business Day. ‘Some of the banks will settle and reach a consent agreement with the commission, rather like the construction companies did,’ a lawyer is quoted as saying.