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Bank fined for inaccurate information

Published on 27 Apr 2010 under category: legal

A bank has been fined by the industry watchdog for its persistent failure in giving accurate daily updates of its transaction activity.

The Financial Services Authority (FSA) has made it compulsory for firms to deliver this information before the end of the day.

It is a measure intended to cut out corporate fraud, in the form of market abuse.

Commerzbank AG in London has received a £595,000 fine for submitting incomplete and inaccurate information over the past two years.

According to the FSA, the bank failed to report around ten per cent of its reportable transactions.

This amounts to around 114,607 in the period considered by the watchdog.

In addition, 47,485 transactions were identified as inaccurate by the FSA but not looked at again by the Commerzbank.

Overall, the bank was found to have inaccurately reported 919,787 of its transactions – more than eight out of ten (84 per cent) of its transactions.

Earlier this month, the watchdog fined three major firms a total of £4.2 million for failing to give accurate transaction reports.

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