Barclays Is Now Fined For Illegal Swap-Reporting Manipulation

Barclays is now fined for illegal swap-reporting manipulation, violating its power as a registered dealer with the CFTC.

The Commodity Futures Trading Commission (CFTC) has announced the filing and settlement of charges against Barclays Bank PLC for breaching the Commodity Exchange Act (CEA) and CFTC regulations related to swap reporting.

As a registered swap dealer with the CFTC, Barclays is required to strictly adhere to these regulations.

Barclays will now pay a civil monetary penalty of $4 million, must cease any violations of the CEA and CFTC regulations, and comply with specific conditions outlined in the order.

Barclays has admitted to the facts presented and acknowledged that its actions violated the CEA and CFTC regulations, per Bloomberg.

Ian McGinley, Director of Enforcement, stated, “In the past year, the CFTC has imposed over $60 million in penalties on six registered swap dealers, including Barclays, due to swap data reporting violations.

This resolution, which includes admissions, underscores our commitment to making sure that the costs of non-compliance exceed the costs of adhering to the law.”

The order indicates that from 2018 to 2023, Barclays failed to report millions of swap transactions accurately or in a timely manner, violating CEA and CFTC regulations.

The reporting issues included:

• Misreporting due to duplicate swap identifiers.
• Incorrect reporting of primary economic terms.
• Misreported time stamps.
• Errors in continuation data reporting.
• Late reporting.

Overall, Barclays did not accurately or promptly report over five million swap transactions during the specified period.

In accepting Barclays’ settlement offer (bribe), the CFTC acknowledged the bank’s “significant cooperation” during the investigation.

This cooperation included proactively identifying swap reporting issues and voluntarily providing detailed information about the violations, per Bloomberg.

The CFTC also recognized Barclays’ efforts to remediate the situation, which involved engaging third-party vendors to review and validate its swap reporting processes.

As a result of this cooperation and remediation, the CFTC reduced the civil monetary penalty.

The enforcement action was conducted by CFTC staff members Jason T. Wright, A. Daniel Ullman II, and Paul G. Hayeck, along with former staff member Lauren Bennett.

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Also Read: TD Bank Now Gets Caught With Illegal Market Manipulation

Other Regulation News Today

The SEC is now seeking to ban an oversight board for ‘massive fraud’, after obtaining a $250 million final judgement against the firm.

The Securities and Exchange Commission has charged Olayinka Oyebola and his accounting firm, Olayinka Oyebola & Co. (Chartered Accountants), with complicity in a significant securities fraud scheme orchestrated by businessman Mmobuosi Odogwu Banye, also known as Dozy Mmobuosi, along with three U.S. companies he controlled, referred to as the Tingo entities.

Recently, the SEC secured a final judgment of $250 million against Mmobuosi and the Tingo entities, per a press release.

The SEC’s complaint alleges that Oyebola and his firm knowingly neglected to act after discovering that Mmobuosi and the Tingo entities had fabricated several audit reports featuring Oyebola’s signature, which were submitted in SEC filings as if they were legitimately issued by his firm.

Oyebola is accused of making significant misstatements to the auditor of one of the Tingo entities and of helping Mmobuosi hide the fact that the audit reports were fraudulent.

This deception led auditors, investors, and regulators to rely on these false reports to their detriment.

The SEC claims that Oyebola’s actions facilitated Mmobuosi and the Tingo entities in executing a multi-year scheme to artificially inflate their financial metrics and defraud investors globally.

Antonia M. Apps, Director of the SEC’s New York Regional Office, stated, “As alleged, Oyebola and his firm violated the public trust and failed to fulfill their responsibilities as public accountants by assisting Mmobuosi and the Tingo entities in executing and concealing their fraud.

We will hold accountable those who undermine the integrity of public markets.”

The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, charges Oyebola and his firm with aiding and abetting violations of federal securities laws related to fraud committed by Mmobuosi and the Tingo entities.

Oyebola is also charged with helping Mmobuosi mislead auditors.

The SEC is seeking civil penalties and permanent injunctive relief, including a ban on Oyebola and his firm from serving as auditors for U.S. public companies or providing significant assistance in preparing SEC financial statements.

The investigation is being conducted by SEC staff members Michael DiBattista, Christopher Mele, Jeremy Brandt, Gerald Gross, and Rebecca Reilly, under the supervision of Tejal D. Shah.

The litigation is led by David Zetlin-Jones and DiBattista, supervised by Alexander Vasilescu, all from the New York Regional Office.

The SEC also acknowledges the assistance of the Israel Securities Authority.

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Also Read: TD Bank Customers Now Say They Cannot Access Their Money

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