NFA Orders OANDA to Pay $200,000 Fine for Reporting Violations

​The National Futures Association​ (NFA), the self-regulatory organisation for the U.S. derivatives industry, has ordered OANDA​, which has been a NFA Member since 2003, to pay a $200,000 fine for failing to submit accurate daily forex reports.

The Decision, issued by NFA's Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by OANDA​.

According to the complaint, in May 2018, OANDA​ was acquired by a subsidiary of a private equity and investment advisory firm. The acquisition closed in October 2018. Starting at about the time of the acquisition, NFA noted an increase in the number and degree of deficiencies occurring at the firm.

NFA identifed these areas of deficiency to OANDA on separate occasions in 2018 and 2019 and instructed the firm to correct the deficiencies. At the same time, NFA also notified OANDA​ of the seriousness of these deficiencies and that continued deficiencies could subject the firm to disciplinary action.

When NFA examined OANDA again in 2020, the firm had repeat deficiencies in several of the areas that NFA had identified previously to the firm.

The Complaint alleged that OANDA​ failed to implement an adequate anti money laundering program, in violation of NFA Compliance Rule 2-9(c); failed to submit accurate daily forex reports to NFA, in violation of NFA Financial Requirements Section 13; and failed to adopt and implement an adequate information systems security program and implement written supervisory procedures for handling and resolving customer complaints, in violation of NFA Compliance Rule 2-36(e). 

Without admitting or denying the allegations of the Complaint, OANDA​ submitted an Offer in which it agreed to pay a fine of $200, 000 to NFA, payable within 30 days after the effective date of a Decision accepting the Offer.