Natwest Markets PLC NatWest Markets pleads guilty in US to spoofing (4096W)
December 21 2021 - 1:06PM
UK Regulatory
TIDM83NF
RNS Number : 4096W
Natwest Markets PLC
21 December 2021
NatWest Markets pleads guilty in US to spoofing
NatWest Markets Plc ("NWM") has today pled guilty in United
States Federal Court to one count of wire fraud and one count of
securities fraud in connection with historical spoofing conduct by
former employees in U.S. Treasuries markets between January 2008
and May 2014 and, separately, during approximately three months in
2018.
As previously disclosed in NWM's announcement on 3 September
2021, the 2018 trading occurred during the term of a
non-prosecution agreement ("NPA") between NatWest Markets
Securities Inc. ("NWMSI") and the United States Attorney's Office
for the District of Connecticut ("USAO CT"), under which
non-prosecution was conditioned on NWMSI and affiliated companies
not engaging in criminal conduct during the term of the NPA. The
relevant trading in 2018 was conducted by two NWM traders in
Singapore and breached that NPA. NWM reported the trading upon
discovery and, following investigation, dismissed the employees
concerned. None of those involved in the earlier spoofing activity
are still employed by NWM or NWMSI.
The plea agreement reached with the United States Department of
Justice and the USAO CT will resolve both the spoofing conduct and
the breach of the NPA.
NWM will pay $25.2 million in a criminal fine; approximately
$2.8 million of criminal forfeiture; and approximately $6.8 million
in restitution. These amounts are fully covered by existing
provisions. The plea agreement also imposes an independent
corporate monitor. In addition, NWM has also committed to
compliance program reviews and improvements and agreed to reporting
and cooperation obligations.
Robert Begbie, CEO of NatWest Markets Plc, said:
"We deeply regret the past behaviour of a small number of former
employees which has led to today's guilty plea and the agreement
with the United States Department of Justice and USAO CT and are
pleased to resolve this matter. The behaviour of these individuals
was unacceptable and has no place in the bank we are today."
For further information, please contact:
Investor Relations: Paul Pybus
+44 (0) 20 7672 1758
Media Relations: Jamie Brookes
+44 (0) 131 523 4205
Legal Entity Identifiers
NatWest Markets Plc RR3QWICWWIPCS8A4S074
Forward-Looking Statements:
This announcement contains forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995, such as statements that include, without limitation,
the words 'expect', 'estimate', 'project', 'anticipate', 'commit',
'believe', 'should', 'intend', 'will', 'plan', 'could',
'probability', 'risk', 'Value-at-Risk (VaR)', 'target', 'goal',
'objective', 'may', 'endeavour', 'outlook', 'optimistic',
'prospects' and similar expressions or variations on these
expressions. These statements concern or may affect future matters,
such as NWM Group's future economic results, business plans and
current strategies, and outcome of legal proceedings.
Forward-looking statements are subject to a number of risks and
uncertainties that might cause actual results and performance to
differ materially from any expected future results or performance
expressed or implied by the forward-looking statements. The
factors, risks and uncertainties that may impact any
forward-looking statement or NWM Group's actual results are
discussed in NWM Plc's 2020 Annual Report and Accounts (ARA), NWM
Plc's 2021 Registration Document, NWM Plc's Interim Results for H1
2021 and other public filings. The forward-looking statements
contained in this announcement speak only as of the date of this
document and NWM Group does not assume or undertake any obligation
or responsibility to update any of the forward-looking statements
contained in this announcement, whether as a result of new
information, future events or otherwise, except to the extent
legally required.
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