FOREX: Bank of England suspends employee after forex probe

The Bank of England has suspended one of its employees in connection with an investigation into whether the Bank helped traders manipulate foreign exchange rates, or were aware of the practice.FCA - Bank of England

A statement on the BoE website says: “[An] extensive review of documents, emails and other records has to date found no evidence that Bank of England staff colluded in any way in manipulating the foreign exchange market or in sharing confidential client information.

“However, the Bank requires its staff to follow rigorous internal control processes and has today suspended a member of staff, pending investigation by the Bank into compliance with those processes.”

Last year (17 October) the Financial Conduct Authority launched several investigations in cooperation with US and other foreign regulators into trading on the foreign exchange markets.

Martin Wheatley said last month (5 February) told the Treasury Select Committee that the allegations could be as serious as the probe into the rigging of the London inter-bank offered rate.

The following day (6 February), New York’s top banking regulator, the Department of Financial Services, opened a new front in the investigation demanding documents from more than a dozen banks including Deutsche Bank, Goldman Sachs, Lloyds, Royal Bank of Scotland and Standard Chartered.

The BoE added: “The BoE does not condone any form of market manipulation in any context whatsoever. The Bank has today re-iterated its guidance to staff regarding management of records and escalation of important information.”

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