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UBS announces involvement in Singapore investigation into rate manipulation

UBS announced on Tuesday that it is currently under investigation in Singapore for possible manipulation of the London interbank offered rate and other benchmark rates.

In its third-quarter earnings report, UBS said that the Monetary Authority of Singapore, as well as authorities in Switzerland, the U.K. and U.S., are investigating whether the bank and other banks attempted to manipulate key interest rates, according to the Malaysian Insider.

The announcement marks the first occasion that UBS has disclosed its involvement in the Singapore investigation.

“These investigations focus on whether there were improper attempts by UBS (among others), either acting on our own or together with others, to manipulate LIBOR and other benchmark rates at certain times,” the bank said, the Malaysian Insider reports.

The Monetary Authority of Singapore ordered members of the Association of Banks in Singapore this past summer to review how they establish key lending rates, focusing primarily on the Singapore interbank offer rate known as Sibor and the Swap Offer Rate.

At least two traders at UBS, Switzerland’s largest bank, have been suspended as part of the bank’s internal probe into suspected manipulation of non-deliverable forwards, which are used to speculate on the movement of currencies subject to foreign exchange restrictions, according to Bloomberg.

UBS was the first global bank to report suspected rate manipulation and has received some conditional immunity from some authorities for its cooperation in the investigations.

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