FCA Fines Merrill Lynch 34.5 Million For Failing To Report Transactions

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Image Merill Lynch International is based in the City

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In this latest case the fine was for failing to report 68.5 million exchange traded derivative transactions between 12 February 2014 and 6 February 2016.

Merrill Lynch International has become the first bank to be reprimanded by the UK's Financial Conduct Authority (FCA) for for failing to report exchange traded derivative transactions under the European Markets Infrastructure Regulation (EMIR).

The requirement to report the transactions was one of the key reforms that were introduced following the financial crisis of 2008.

The fine for Merrill Lynch International had been cut down by 30% after the firm agreed to settle during an early stage of the investigation.

The executive director of FCA's enforcement and market oversight said through a prepared statement that it was vital that the reporting companies ensure that their reporting systems for transactions are tested, adequately resourced as well as perform properly.

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The statement added that the "unfounded declarations" will not undermine Africa's cooperation with African countries. Borders between Morocco and Algeria have also been closed since 1994.

The Financial Conduct Authority (FCA) has fined United States banking giant Bank of America Merrill Lynch (BAML) £34.5m for failing to disclose millions of exchange traded derivative transactions.

"The obligations under EMIR, as with MiFID, are key aspects of such oversight". He added that a line in the sand was needed to keep transparency.

Because of that, the Bank of America division of wealth management was given a discount of 30% on what would have resulted in a fine of nearly $65 million. "We will continue to take appropriate action against any firm that fails to meet requirements", Mr. Steward explained.

Merrill Lynch was previously fined by the FCA on two separate occasions; £150,000 in 2006 over share trading reporting failures and then £13.28m in 2015 for failing to accurately report transactions over a seven year period.

A spokeswoman for Bank of America said it had since "re-evaluated and improved" its processes.

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