On 21 July 2014, the Serious Fraud Office (SFO), which has been
collecting information over the past few months, opened a criminal
investigation into allegations of fraudulent conduct in the foreign
exchange (Forex) market. This investigation will target
individuals, who risk imprisonment, and banks who risk fines
similar to those imposed following the LIBOR scandal, in relation
to which banks and inter-dealer brokers have paid out more than USD
6 billion so far. The SFO has the power to investigate both
anti-trust and fraud offences.
Around 15 international agencies are currently investigating
claims of collusion and price manipulation in Forex, the abuses
allegedly having been coordinated using online chatrooms. The SFO
will work together with both the Financial Conduct Authority (FCA)
and the US Department of Justice (DoJ), which launched its own
criminal investigation in October last year. The DoJ is examining,
among other allegations, whether traders from
