(CN) – The Federal Reserve on Monday slapped BNP Paribas S.A. and some of its U.S. subsidiaries with a $246 million fine for what it said were the firm’s unsafe and unsound practices in foreign exchange markets.
The Federal Reserve board of governors levied the fine after finding deficiencies in BNP Paribas’s oversight of, and internal controls over, FX traders who buy and sell U.S. dollars and foreign currencies for the firm’s own accounts and for customers.
The board said the firm failed to detect and address that its traders used electronic chatrooms to communicate with competitors about their trading positions.
Its order requires BNP Paribas to improve its senior management oversight and controls relating to the firm’s FX trading.
In January 2017, the board permanently prohibited former BNP Paribas trader Jason Katz from participating in the banking industry for what it said was his manipulation of FX prices.