In 2020, the CFTC ordered Scotiabank to pay US$127.4 million for futures contract manipulation. (photo: The Canadian Press)
Scotiabank (SNB) is facing a $15 million fine from the US Futures Trading Commission (CFTC) for failing to maintain and oversee records.
The CFTC said it issued an order stating that Scotiabank affiliates for years failed to prevent its employees, including senior executives, from communicating through unapproved methods, including text messaging or using WhatsApp.
The committee noted that the bank is also required to keep a record of these communications, which was not generally the case.
It said the use of the communication channels violated Scotiabank’s own policies and that some of the people overseeing those policies had themselves used unapproved means of communication.
Scotiabank spokeswoman Heather Armstrong said in a statement that the bank is committed to conducting its business in accordance with “the highest standards of professional conduct and meeting all regulatory requirements” and that it has accepted decisions with regulators.
In 2020, the CFTC ordered Scotiabank to pay $127.4 million for futures contract manipulation, misrepresentation, and compliance and oversight violations.
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