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 to civil action by the regulator.