Forex-Rigging Scandal Reignites: SA Court Greenlights Major Banks for Hearing

South Africa's Constitutional Court has authorized competition authorities to proceed with forex-rigging claims against major banks, including JPMorgan. This decision, unfolding amidst a global crackdown on currency manipulation, revives one of the country's largest such cases, initially flagged in 2017 and involving activities from 2007 to 2013.

The Constitutional Court of South Africa has issued a landmark ruling, allowing competition authorities to move forward with forex-rigging claims involving six major banks, including JPMorgan Chase and BNP Paribas. This pivotal decision sets the stage for a comprehensive hearing on allegations that these institutions engaged in manipulating the rand more than a decade ago.

The ruling follows years of complex litigation and forms part of a broader global initiative to curb foreign-exchange rigging. Globally, the crackdown has led to some of the world's prominent banks, such as JPMorgan and HSBC, incurring fines exceeding $11 billion for currency rate manipulations uncovered over the years.

Initially referred to the Competition Tribunal in 2017, the case alleges coordinated trading operations in the U.S. dollar-rand market from 2007 to 2013, primarily through private online chatrooms. With banks like Investec ready to present their defense, the upcoming tribunal hearings promise to be highly significant in the financial sector.