Bank of New York Mellon will pay a $30 million penalty to the U.S. Securities and Exchange Commission in a settlement related to the bank's pricing of foreign-exchange transitions.
The SEC found that the New York-based based bank misled certain custody clients on foreign-exchange transactions from 2000 to at least 2011, according to a regulatory filing Monday. Instead of providing the best rates available, as it promised customers, the bank was accused of obtaining the best rates for itself and gave less favorable terms to clients, pocketing the difference.
In 2015 the bank agreed to pay a total of $714 million to resolve the foreign exchange issue, with money going to New York State and federal authorities, including the SEC, as well as to customers who filed a class-action lawsuit.
"We are pleased to put these legacy FX matters behind us, which was in the best interest of our company and our constituents," Colleen Anne Krieger, a spokeswoman for the bank, said in an e-mailed statement.