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March 29, 2019

Goldman Sachs fined £34.3m for reporting breaches

Goldman Sachs International (GSI) has been hit with a fine of £34.3m by the UK’s Financial Conduct Authority (FCA) for reporting failures on 220.2 million transactions from November 2007 to March 2017.

This includes a failure to offer timely and accurate data on around 213.6 million transactions and erroneous reporting of 6.6 million transactions.

According to the watchdog, loopholes were found in the firm’s maintenance of counterparty reference data used in reporting and how it tested the accuracy of transactions.

The firm was also accused of shortcomings in its change management processes.

FCA executive director of enforcement and market oversight Mark Steward said: “The failings in this case demonstrate a failure over an extended period to manage and test controls that are vitally important to the integrity of our markets.

“These were serious and prolonged failures.”

The firm is said to have received a 30% discount on the fine on agreeing to the settlement.

The penalty would amount to £49.1m excluding the discount.

UBS was fined £27.6m on similar grounds by FCA last week.

The regulator accused UBS of misreporting over 136 million transactions between 2007 and 2017.

Lately, Goldman Sachs has also been embroiled in the 1MDB Malaysian state fund scandal.

Its former bankers Tim Leissner and Roger Ng Chong Hwa were implicated in the case.

Abu Dhabi sovereign wealth fund Mubadala Investment Company recently suspended new business dealings with the bank over the scandal.


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