In spite of these failures, the CFTC recognized BNY’s cooperation and its self-reporting of many violations, leading to a reduced fine. According to its 2023-2020 Annual Report, the bank that year found and reported several issues plus a few more violations being carried out in previous annual reports.
Holding to the principles of precision in reporting, CFTC Enforcement Director Ian McGinley emphasized that accurate processes for doing so are the “pillar” of swaps regulatory obligations. He praised BNY for its cooperation and decision to retain an independent compliance consultant to strengthen its compliance program.
This settlement comes with a general trend in CFTC enforcement actions of larger financial institutions. In 2023 the CFTC fined Goldman Sachs, JPMorgan, Bank of America and Merrill Lynch a total of $53 million for similar violations.
BNY said it took its regulatory obligations seriously and was satisfied with the outcome.
