RBS FX Trader’s Arrest Said to Have Preceded Departure From U.K.

U.K. prosecutors arrested Royal Bank of Scotland Group Plc currency trader Paul Nash last month as he was about to leave the country, according to two people with knowledge of the matter.

Nash, a sterling spot trader suspended by RBS in 2013, was arrested in Billericay, a town east of London, days before he left for Canada, said the people, who asked not to be identified as details of his arrest aren’t public.

Nash posted 100,000 pounds ($151,000) in bail and was ordered to appear at a London police station in June, according to an official at Westminster Magistrates’ court, who can’t be identified under court policy. His contacts with others involved in the investigation were limited, and he was ordered to live and sleep at an address in British Columbia.

He is the first person to be arrested since currency-rigging investigations began in 2013. Authorities on three continents have been probing allegations that dealers leaked confidential client information to counterparts at other firms and colluded to rig currency benchmarks used by money managers. RBS was one of six banks fined $4.3 billion in November to settle with regulators in the U.S., U.K. and Switzerland.

Six RBS employees face disciplinary action and three have been suspended as part of the government-owned lender’s investigation, dubbed Project Fox. Nash was suspended in October 2013, following an internal review of trader communications. The Edinburgh-based bank said last month that it also blocked 18 traders’ bonuses.

Bail Sureties

James Abbott, an RBS spokesman, declined to comment.

Nash didn’t respond to calls to his London office or an e-mail to his LinkedIn account. Kingsley Napley LLP represents Nash, according to the Financial Times, which reported his arrest earlier this week. A spokesman for the London law firm declined to comment on whether lawyers there are defending him.

“A 48-year-old man appeared before Westminster Magistrates’ Court on 23 December in relation to the SFO’s ongoing Forex investigation,” the Serious Fraud Office, which is leading the criminal probe in the U.K., said in a statement. “He remains on police bail in relation to this matter.”

In January and June, Nash will have a few nights back in England when he must stay at an address in Essex. Two other individuals posted 100,000-pound bail sureties on his behalf, according to the court official.

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