CFTC fines OANDA over violating capital, reporting, and supervision rules
The order requires OANDA to pay a $500,000 civil monetary penalty and to cease and desist from any further violations of CFTC regulations.
The United States Commodity Futures Trading Commission (CFTC) today issued an order filing and settling charges against retail FX broker OANDA Corporation for violating certain capital, reporting, and supervision rules.
Specifically, OANDA failed to meet minimum net capital requirements, violated the equity withdrawal restriction in making dividend payments on three occasions, failed to meet certain reporting requirements, and failed to diligently supervise matters related to its business as a CFTC registrant. The order requires OANDA to pay a $500,000 civil monetary penalty and to cease and desist from any further violations of CFTC regulations.
The CFTC order finds that, in or around October 2018 and during the period April 2019 to August 2019, OANDA failed at times to meet certain capital requirements applicable to futures commission merchants offering or engaging in retail Forex transactions and/or to retail foreign exchange dealers. OANDA failed to meet net capital requirements from April 26, 2019 to August 21, 2019 and made dividend payments on October 15, 2018, April 26, 2019, and May 28, 2019 in violation of the equity withdrawal restriction.
Also, OANDA failed to meet certain financial reporting requirements related to these violations.
In addition, OANDA did not maintain adequate internal controls with respect to these financial and reporting requirements. Consequently, the firm failed to diligently supervise matters related to its business as a CFTC registrant.
The order recognizes OANDA’s cooperation in the investigation of this matter. The order also notes that the Division of Enforcement found no indication that customers suffered losses as a result of the firm’s net capital and equity withdrawal restriction violations.