New York Financial Services Superintendent Maria T. Vullo announced that Goldman Sachs Group Inc., parent company of Goldman Sachs Bank USA, agreed to pay a $54.75M fine as part of a consent order with the New York State Department of Financial Services for violating New York banking law, including improperly sharing customer information with other global banks, and other unlawful conduct that disadvantaged customers and potentially affected foreign exchange prices. The violation announced today stems from an investigation by DFS determining that from 2008 to early 2013, Goldman engaged in unlawful, unsafe and unsound conduct by failing to implement effective controls over its foreign exchange business. Under the consent order, Goldman will submit to DFS: An enhanced written internal controls and compliance program acceptable to the Department to comply with applicable New York State and federal laws and regulations with respect to the bank’s foreign exchange trading business as it affects or pertains to the Bank or New York customers; A written plan acceptable to the Department to improve the bank’s compliance risk management program with regard to compliance by the bank with applicable New York and federal laws and regulations with respect to its foreign exchange business as it affects or pertains to the bank or New York customers; and An enhanced written internal audit program acceptable to the Department with respect to the Bank’s compliance with applicable New York and federal laws and regulations, as well as the Bank’s internal policies and procedures, in its foreign exchange trading business as it affects or pertains to the bank or New York customers.
previous post