Washington, D.C. – The Commodity Futures Trading Commission (CFTC) unveiled a new Enforcement Advisory today, focusing on self-reporting and cooperation related to violations of the Commodity Exchange Act (CEA) stemming from foreign corrupt practices. The advisory aims to incentivize companies and individuals to come forward with information regarding illicit activities in the commodities and derivatives markets.
According to CFTC Enforcement Director James McDonald, the agency recognizes the growing need for collaboration in combating financial misconduct with international implications. “Combatting misconduct that affects our financial markets has truly become a team effort, and that is particularly true with respect to foreign corrupt practices,” McDonald stated during remarks at the American Bar Association’s National Institute on White Collar Crime. He emphasized the CFTC’s commitment to identifying and holding accountable those involved in such practices, working in conjunction with domestic and foreign law enforcement partners.
The advisory builds upon previous guidance regarding self-reporting and cooperation, offering clarity on the benefits of proactively disclosing misconduct, fully cooperating with investigations, and implementing remediation measures. The CFTC intends to significantly credit these actions when determining appropriate sanctions.
Assistant Attorney General Brian A. Benczkowski of the Department of Justice’s Criminal Division echoed this sentiment, noting the synergy between the CFTC’s advisory and the Department’s own Corporate Enforcement Policy. Both policies aim to encourage voluntary self-disclosure, full cooperation, and remediation, offering substantial benefits to those who comply.
The CFTC is also highlighting its whistleblower program, which offers financial rewards to individuals who provide information leading to successful enforcement actions. Whistleblowers can receive between 10% and 30% of the monetary sanctions collected, funded entirely by penalties paid by CEA violators – ensuring no funds are drawn from those harmed by the misconduct. Those with information regarding foreign corrupt practices are encouraged to submit it through whistleblower.gov.
This advisory signals a coordinated effort between the CFTC and the Department of Justice to aggressively pursue and penalize foreign corruption within the U.S. commodities and derivatives markets, while simultaneously incentivizing transparency and self-regulation within the industry.
Source: CFTC.gov
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