Two Australian banks sanctioned by regulator over forex practices

Sydney

TWO of Australia's largest banks vowed to toughen oversight of their foreign exchange practices and each pay A$2.5 million (S$2.6 million) to the nation's financial literacy fund after a regulator found inappropriate conduct in their currency trading divisions.

Commonwealth Bank of Australia and National Australia Bank Ltd said they entered into a so-called enforceable undertaking with the Australian Securities & Investments Commission to make changes to their foreign exchange systems, controls and supervision. An enforceable undertaking is an Australian legal device that is sometimes used as an alternative …