“For more than eight years, Scotiabank merchants have placed thousands of orders for precious metal futures to manipulate prices for their own profit and for the benefit of the bank and to deceive other market participants,” said Chief Robert A. Zink of the Department of Corruption Department. “This open prosecution agreement – which includes a criminal fine at the head of U.S. guidelines, money to compensate victims and an independent compliance monitor – reflects the seriousness of the breach and the status of Scotiabank`s compliance program and continues to contribute to the promotion of the integrity of our public procurement.” “Today, Scotiabank recognized its role in a massive price manipulation program that seeks to improperly manufacture precious metal futures prices to serve the bank`s best interests,” said William F. Sweeney, Deputy Director for Dies of the FBI`s New York Field Office. “The Bank`s actions were designed to encourage others to act in a way they would never have done without the way that was thought to be legitimate in the marketplace. Scotiabank`s agreement to provide more than $60 million in fines, severance pay and compensation for victims highlights the heavy penalties that can be imposed on those who want to use similar and illegal business tactics. As part of the Dpa, Scotiabank has agreed to cooperate with the Department of Justice in ongoing investigations and prosecutions of wrongdoing and to amend its compliance program, according to the authorities. The Bank also agreed to maintain an independent compliance monitor for three years. “This open prosecution agreement – which includes a criminal fine at the head of U.S. guidelines, money to compensate victims and an independent compliance monitor – reflects the seriousness of the breach and the status of Scotiabank`s compliance program and helps promote the integrity of our public procurement,” Robert Zink, head of the Department of Justice`s Criminal Department Fraud Department, said in a statement.

About ScotiabankScotiabank is a leading bank in North and South America. Guided by our goal of “for every future,” we help our clients, their families and communities succeed through a wide range of advice, products and services, including private and commercial banks, asset management and private banking, corporate and investment banking, and capital markets. With a team of approximately 97,000 employees and a fortune of more than $1.2 trillion (as of April 30, 2020), the Bank of Scotia on the Toronto Stock Exchange (TSX: BNS) and the New York Stock Exchange (NYSE: BNS) trades. For more information, visit www.scotiabank.com and follow us on Twitter @ScotiabankViews. The Department of Justice has deferred prosecution agreement in Scotiabank on charges of wire fraud and attempted price manipulation, as well as related civil law charges resolved by the U.S. Commodity Futures Trading Commission. The fine is an agreement with the Ministry of Justice on adjourned criminal proceedings and three civil cases brought by the Commodity Futures Trading Commission (CFTC). Today, the CFTC announced two separate comparisons with Scotiabank in a parallel proceeding. One of Scotiabank`s decisions with the CFTC relates to the illegal trade in Flaum and the three other traders that Scotiabank did not fully disclose to the CFTC in the CFTC`s previous investigation, which resulted in the CFTC 2018 resolution discussed above. Under the new agreement between Scotiabank and the CFTC, Scotiabank agreed to pay approximately US$60.4 million, including a $42 million civil fine, as well as repayment and compensation, credited to the department.