Banque Havilland Sanctioned for Currency Manipulation Scheme

Banque Havilland, now known as Rangecourt SA, has lost its appeal against sanctions imposed by the UK's Financial Conduct Authority (FCA) regarding an alleged scheme to devalue the Qatari riyal. The Upper Tribunal upheld the FCA's findings but reduced the initial fine from £10 million to £4 million ($5.5 million). The FCA's investigation revealed that the bank had created a presentation outlining a strategy to weaken the Qatari currency during a regional blockade initiated in 2017 by Saudi Arabia, the United Arab Emirates, Bahrain, and Egypt, which accused Qatar of supporting Islamist militants and Iran.

Tribunal upholds FCA sanctions against Banque Havilland but slashes fineNEWS: Banque Havilland’s fine over Qatar bonds presentation cut by UK tribunalTribunal upholds FCA decision to fine bank and two employees over plan to harm Qatari economy

The FCA alleged that the presentation, titled "Setting fire to the neighbour’s house fund," was intended to market the bank's services to the Abu Dhabi sovereign wealth fund, Mubadala Investment Company. The regulator claimed that the plan involved manipulative trading strategies aimed at breaking the Qatari riyal's peg to the US dollar, thereby harming Qatar's economy. Banque Havilland has consistently denied any intent to execute the transactions described in the leaked document, asserting that it was hacked and leaked without authorization.

Tribunal upholds FCA sanctions against Banque Havilland but slashes fine

The tribunal's ruling also upheld fines against former CEO Edmund Rowland, amounting to £352,000, and former employee Vladimir Bolelyy, who was fined £14,200. Both individuals were banned from working in financial services for life. The tribunal found that Rowland had lied to the FCA and in court, and had encouraged Bolelyy to do the same. The FCA's executive director for enforcement and market oversight, Steve Smart, stated that the actions of Banque Havilland and its executives were motivated by greed and aimed at seriously damaging the Qatari economy.

Tribunal upholds FCA decision to fine bank and two employees over plan to harm Qatari economyTribunal upholds FCA sanctions against Banque Havilland but slashes fineNEWS: Banque Havilland’s fine over Qatar bonds presentation cut by UK tribunal

The FCA's investigation concluded that the misconduct by Banque Havilland was serious and constituted regulatory breaches that encouraged financial crime and market misconduct. In response to the tribunal's decision, Smart remarked, “Motivated by greed, Banque Havilland, Mr. Rowland and Mr. Bolelyy had a plan to seriously damage the Qatari economy. It is right that they have been held to account.”

Tribunal upholds FCA decision to fine bank and two employees over plan to harm Qatari economyTribunal upholds FCA sanctions against Banque Havilland but slashes fineNEWS: Banque Havilland’s fine over Qatar bonds presentation cut by UK tribunal

Despite the tribunal's ruling, Banque Havilland has maintained that it did not intend to carry out the actions outlined in the presentation. The bank's legal representatives argued that the conduct of individual employees should not be attributed to the institution itself. This defense was ultimately rejected by the tribunal, which emphasized the seriousness of the regulatory breaches.

NEWS: Banque Havilland’s fine over Qatar bonds presentation cut by UK tribunal

The European Central Bank withdrew Banque Havilland's operating license in 2024, a decision that is currently under appeal. The ongoing legal challenges and the implications of the tribunal's ruling may further impact the bank's operations and reputation in the financial sector.

Tribunal upholds FCA sanctions against Banque Havilland but slashes fine