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Trafigura settles $55 million US fine in market abuse case


Trading house Trafigura has agreed to pay a $55 million fine in a settlement with US regulators over charges of fraud and manipulation dating from 2014 to 2020. The Commodity Futures Trading Commission accused the company of trading petrol with non-public information, manipulating fuel oil benchmarks, and hindering communications with whistleblowers. Trafigura neither admitted nor denied the allegations but has taken steps to enhance its compliance program since then.

This fine comes amidst other investigations into Trafigura, including a guilty plea in March for bribery in Brazil, resulting in a $127 million fine and forfeited profits. The company is also facing charges in Switzerland for bribing officials in Angola.

The CFTC accused Trafigura of improperly obtaining non-public information from a Mexican trading entity and manipulating fuel oil benchmarks. The company also impeded communications with authorities by requiring employees to sign non-disclosure agreements without a carve-out for whistleblower communications. This marks the first time the CFTC has charged a company for interfering with whistleblower communications.

In response to the allegations, Trafigura has agreed to modify its employment contracts to clarify that they do not inhibit communications with authorities about illegal activity. Headquartered in Singapore, Trafigura is one of the world’s largest trading houses, with major operations in Geneva and Houston. The company made profits of $1.5 billion in the six months to March 2021.

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Photo credit www.ft.com

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