Bitcoin’s ‘Kimchi premium’ slips as South Korean officials pledge action on illegal crypto market activities
Kollen Post, 07 April 2021
South Korea’s government has pledged to focus on illegal activities in crypto markets.
The South Korean Financial Services Commission, Ministry of Finance, Ministry of Justice, among other regulators, met on April 7 to discuss virtual asset trading. In their announcement following the meeting, the authorities wrote: Continue reading “Article: Bitcoin’s ‘Kimchi premium’ slips as South Korean officials pledge action on illegal crypto market activities”
Fincrime Briefing: UBS pays to settle laundering probe, U.S., South Korea take down largest crypto-fueled child exploitation site, DOJ guidance on fines when you can’t pay, and more
Brian Monroe, 17 October 2019
UBS pays $11 million to settle Italian money laundering probe, tied to tax fracas An Italian judge has accepted a request by UBS to pay more than 10 million euros ($11 million) to settle a money-laundering investigation, ending one of the Swiss bank’s biggest legal headaches in Europe, just the latest in a series of international probes and settlements tied to financial crime and compliance failures.
UBS has been grappling with two separate probes in Italy and a court case in France over allegations it enabled cross-border tax cheats to hide assets in Switzerland.
The judge on Thursday accepted the payment of 2.125 million euros as “agreed penalty” to close the case while also seizing 8.175 million euros as profit from the alleged money-laundering, two sources with direct knowledge of the matter said.
The settlement, which by Italian law is not an admission of guilt, was requested by UBS in July, after a deal with Italian prosecutors. Last June, the Swiss bank paid 101 million euros to settle its other Italian case, a related financial investigation, with tax authorities. Continue reading “Article: Fincrime Briefing: UBS pays to settle laundering probe, U.S., South Korea take down largest crypto-fueled child exploitation site, DOJ guidance on fines when you can’t pay, and more”
Draghi brushes off Trump accusation of currency manipulation
EURACTIV, 19 June 2019
European Central Bank chief Mario Draghi said Tuesday (18 June) that the institution “doesn’t target the exchange rate”, shrugging off an allegation of currency manipulation from US President Donald Trump.
“We have our remit. We have our mandate. Our mandate is price stability” or inflation just below two percent, Draghi told a central banking conference in Sintra, Portugal.
“We are ready to use all the instruments that are necessary to fulfil this mandate, and we don’t target the exchange rate,” he added.
Draghi’s statement that weak economic growth and sluggish inflation could prompt the ECB to slash further rates already at historic lows had earlier sparked Trump’s ire.
“Mario Draghi just announced more stimulus could come, which immediately dropped the Euro against the Dollar, making it unfairly easier for them to compete against the USA,” Trump said on Twitter.
“They have been getting away with this for years, along with China and others,” he added.
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Goldman Sachs affiliate again faces fine for naked short selling
Bae Hyunjung, 09 April 2019
South Korea’s financial authority has fined a Goldman Sachs affiliate 72 million won ($63,000) for naked short selling, marking the third case of the US-based investment bank facing sanctions here.
The Securities and Futures Commission of the Financial Services Commission judged earlier this year that Singapore-based Goldman Sachs India Investments conducted short selling without securing underlying assets, officials said Monday.
Naked short selling refers to the sale of borrowed shares in order to profit by buying them back at a lower price, but without actually borrowing the stocks first. Unlike short selling, naked short selling has been prohibited in Korea since 2008. Continue reading “Article: Goldman Sachs affiliate again faces fine for naked short selling”
Goldman Sachs Fined 7.5 Bil. Won for Naked Short Selling of Stocks in S. Korea
Yoon Young-sil, 29 November 2018
South Korea’s financial authorities have imposed the biggest ever fine on Goldman Sachs Group for its naked short selling activities.
The Securities & Futures Commission (SFC), an investigative body of the Financial Services Commission (FSC), decided on Nov. 28 to impose a 7.5 billion won ($6.65 million) in fine on Goldman Sachs Group’s subsidiary Goldman Sachs International for violating the short selling rules. Continue reading “Article: Goldman Sachs Fined 7.5 Bil. Won for Naked Short Selling of Stocks in S. Korea”
(LEAD) Goldman Sachs fined 7.5 bln won for illegal naked short selling in S. Korea
Yonhap News Agency, 28 November 2018
South Korea’s financial regulator said Wednesday it decided to fine the Seoul branch of Goldman Sachs Group Inc. 7.5 million won (US$6.66 million) for carrying out naked short selling, which is illegal here.
It marked the largest fine against a financial institution for violating the rules that ban such short selling in South Korea.
Market watchers had expected the Financial Services Commission (FSC) to slap a fine of up to 1 billion won against Goldman Sachs for naked short selling, which was carried out in late May. Continue reading “Article: (LEAD) Goldman Sachs fined 7.5 bln won for illegal naked short selling in S. Korea”
S.Korea’s regulator fines Goldman Sachs 6.7 mln USD for naked short selling
Shi Yinglun, 28 November 2018
South Korea’s financial regulator said Wednesday that it fined the Seoul branch of U.S.-based Goldman Sachs Group 7.5 billion won (6.7 million U.S. dollars) for the naked short selling that is illegal in the country.
The Financial Services Commission (FSC) said the fine was imposed as the U.S.-based investment bank violated the local rules that ban financial institutions from making a sell order without borrowed stocks.
Short selling, which is legal here, refers to the sale of borrowed stocks on expectations for a price fall. The borrowers are required to return back the borrowed stocks by buying back the stocks when the price falls, making a profit of the price gap. Continue reading “Article: S.Korea’s regulator fines Goldman Sachs 6.7 mln USD for naked short selling”
Goldman Sachs fined for illegal naked short selling by mistake in S. Korea
Lim Chang-won, 28 November 2018
South Korea’s financial watchdog slapped the local branch of Goldman Sachs, an American multinational investment bank and financial services group, with a fine of 7.5 billion won ($6.6 million) for naked short selling. It’s the biggest fine against a financial institution for naked short selling.
Short selling refers to the sale of borrowed shares in the hope of making a profit from a price fall by buying the shares back at a lower price. Naked short selling, a practice of short selling without borrowing shares, is illegal in South Korea.
The Financial Services Commission (FSC) said Wednesday that Goldman Sachs issued a sell order of stocks worth 40.1 billion won without borrowing stocks for two days on May 30 and 31. As a result, the commission said that about 145 million shares were not delivered for settlement. Continue reading “Article: Goldman Sachs fined for illegal naked short selling by mistake in S. Korea”
CORRECTED-S.Korea fines Goldman Sachs’ unit $6.7 mln for naked short selling
Reuters Staff, 18 November 2018
SEOUL, Nov 28 (Reuters) – South Korea’s financial regulator said on Wednesday it has imposed a 7.5 billion won ($6.66 million) fine on Goldman Sachs Group’s subsidiary Goldman Sachs International for violating short-selling rules.
The fine is for its short selling activities without securing underlying assets, the Financial Services Commission (FSC) said in a statement, noting the U.S.-based international investment bank’s unit conducted short sales worth 40.1 billion won in May.
Naked short selling, which occurs when an investor sells stock that has not yet been borrowed, is illegal in South Korea. ($1 = 1,126.5500 won)
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Goldman Sachs may face $1.76 mn fine for naked short selling
Jin Young-tae and Choi Mira, 10 October 2018
The U.S. investment banking giant Goldman Sachs could face a fine of up to 2 billion won ($1.76 million) by the South Korean financial authorities for conducting more than 100 naked short selling transactions banned by the Korean law.
This would be the biggest fine to be slapped for a financial institution in short-sale transactions in the country.
According to sources from the investment banking industry on Tuesday, the financial authority decided to impose a 2 billion won fine on Goldman Sachs for illegally shorting more than 100 local stocks on May 30, and will submit its finding to the top decision-making Securities & Futures Commission of the Financial Services Commission (FSC) within this week. Continue reading “Article: Goldman Sachs may face $1.76 mn fine for naked short selling”
Deutsche Bank charged in South Korea over stock rout
BBC News, 22 August 2011
Deutsche Bank’s South Korean brokerage and four of its employees have been charged with illegally manipulating Seoul’s stock market last year.
Korean prosecutors allege the firm earned more than 45bn won ($41.5m; £25m) in unfair trading on 11 November. In a statement, Deutsche Bank denied the charges and said it would defend itself in court.
Seoul’s benchmark share index fell by 48 points, or 2.7%, in the last 10 minutes of trading on 11 November.
Korea’s Financial Services Commission confirmed that about 2.4tn won in sell orders from foreign investors were processed on that day, most of them through Deutsche Bank’s local securities unit. Continue reading “Article: Deutsche Bank charged in South Korea over stock rout”
4 at Deutsche Bank indicted over stock manipulation
Choi He-suk, 21 August 2011
Four employees of Deutsche Bank AG and Deutsche Securities Korea have been indicted on charges of gaining unlawful profits by manipulating stock prices, the Seoul Central District Prosecutors’ Office said Sunday.
Of the four, three work at Deutsche Bank’s Hong Kong branch including one executive. The other is an executive of Deutsche Securities Korea.
The Hong Kong-based individuals have so far refused to comply with the prosecution’s summons. The prosecutors said that if they do not attend the hearing, it plans to request their extradition and to request Interpol’s cooperation if necessary. Continue reading “Article: 4 at Deutsche Bank indicted over stock manipulation”
Deutsche Bank Korea appeals freeze order over stock manipulation
TRADE FINANCE, 14 July 2011
The South Korean of Deutsche Bank AG has appealed a Seoul court’s decision to freeze its assets over allegations that the company pocketed massive profits from illegal stock market trading late November.
The bank lodged the appeal last month in response to the Seoul Central District Court’s order to freeze 44.8 billion won or $42.3 million worth of deposits jointly held by the lender and Deutsche Securities Korea, its brokerage unit, court spokesman Gong Do-il said. Continue reading “Article: Deutsche Bank Korea appeals freeze order over stock manipulation”