New Zealand and Hong Kong have entered the ongoing investigations started by other regulators by looking into whether local banks colluded in the manipulation of the foreign exchange prices.
Tuesday’s announcement by the two countries follows Monday’s announcement by the Switzerland’s competition regulator that it had found signs pointing to illegal activity after it launched an investigation into forex rigging by eight Swiss banks. The U.K. Financial Conduct Authority also said on Monday that it is analyzing whether investment banks have sufficient controls to prevent dealers from fixing benchmark rates.
The Hong Kong Monetary Authority had earlier indicated that it was gathering information, talking with other overseas regulators and inquiring with the local banks. However, it revealed on Tuesday that it had directed some banks in Hong Kong to hire consultants or lawyers to go over their operations.
“The HKMA is investigating a number of banks in Hong Kong by requiring them to conduct independent reviews of their FX operations and submit the results to the HKMA,” it said, according to the Financial Times. “The reviews are in progress. The HKMA is also liaising with relevant overseas bank supervisors on the matter.”
HKMA didn’t offer any further information, saying that it will initiate investigations if there is sufficient evidence or information “to warrant such action”.
On the other hand, the New Zealand’s Commerce Commission told Reuters that it had commenced its investigations into the issue.
“We’ve got an investigation but that’s all we’re saying because it’s an active investigation,” the commission told Reuters.
To contact the reporter of this story; Yashu Gola at Yashu@forexminute.com