12 CFR § 48.3 - Prohibited transactions.

---
identifier: "/us/cfr/t12/s48.3"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 48.3 - Prohibited transactions."
title_number: 12
title_name: "Banks and Banking"
section_number: "48.3"
section_name: "Prohibited transactions."
chapter_name: "COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY"
part_number: "48"
part_name: "RETAIL FOREIGN EXCHANGE TRANSACTIONS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "7 U.S.C. 27  12 U.S.C. 1  24, 93a, 161, 1461  1462a, 1463, 1464, 1813(q), 1818, 1831o, 3101  3102, 3106a, 3108, and 5412."
regulatory_source: "76 FR 41384, July 14, 2011, unless otherwise noted."
cfr_part: "48"
---


# 48.3 Prohibited transactions.

(a) *Fraudulent conduct prohibited.* No national bank or its IAPs may, directly or indirectly, in or in connection with any retail forex transaction:

(1) Cheat or defraud or attempt to cheat or defraud any person;

(2) Willfully make or cause to be made to any person any false report or statement or cause to be entered for any person any false record; or

(3) Willfully deceive or attempt to deceive any person by any means whatsoever.

(b) *Acting as counterparty and exercising discretion prohibited.* If a national bank can cause retail forex transactions to be effected for a retail forex customer without the retail forex customer's specific authorization, then neither the national bank nor its affiliates may act as the counterparty for any retail forex transaction with that retail forex customer.