Goldman Sachs has been hit with a $1m fine by the US Commodity Futures Trading Commission (CFTC) for certain recordkeeping failures.
The investment banking firm was penalised for failing to keep audio recordings of certain traders’ phone calls, violating stipulated regulations.
The lapses also cumbered another unrelated probe by the Division of Enforcement, the regulator found.
CFTC enforcement director James McDonald said: “Registrants must comply with the commission’s recordkeeping requirements, as with all other applicable laws.
“When they do not, we are committed to holding them accountable. This action reinforces the critical importance of recordkeeping requirements to the CFTC’s enforcement mission.”
In the order, CFTC noted that Goldman Sachs deployed telephone recording hardware at trading and sales desks in March 2013, to meet its recordkeeping obligations as a swap dealer.
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However, the installation of a software security patch in January 2014 led to malfunction of the hardware preventing subsequent recording of trade calls.
The glitch was identified nearly three weeks later during an unrelated spot-check of the recording system.
Due to the botch-up, Goldman Sachs failed to submit ‘a significant number’ of the requested recordings in subsequent investigation by the Division of Enforcement.
Earlier this year, Goldman-subsidiary Goldman Sachs International (GSI) was fined £34.3m by the UK’s Financial Conduct Authority (FCA) for reporting failures.
The investment bank also paid $109.5m as penalty in the US last year for improper forex trading practices.