US futures regulator to list criminal offenses and penalties

The Commodity Futures Trading Commission (CFTC) on Friday issued a policy statement describing its plan to address criminally liable regulatory offenses, as part of its obligation under the EO to promote regulatory transparency issued in May.

CFTC said it will consult with the Attorney General and submit a report to the Director of the Office of Management and Budget listing all criminal regulatory offenses enforceable by the Commission or the Department of Justice (DOJ), and detailing the range of potential penalties for a violation.

The US agency said the report will be issued “within 365 days of the date of this order” which makes the deadline May next year.

The latest policy adoption supersedes the agency’s earlier advisory issued in July to refer potential violations of criminal regulatory offenses to DOJ, CFTC said, adding that the new policy statement will be published in the Federal Register.

According to the EO, the CFTC, while referring alleged violations to the Department of Justice, should consider harm or risk of harm caused by the alleged offense, potential gain to the accused and evidence, if any, that the accused was aware of their unlawfulness.

The agency last week penalised six banks $8.32 million (£6.2m) for compliance violations, marking the first penalties under the watchdog’s new Sprint enforcement approach.

CFTC acting chair Caroline Pham said in March that the watchdog will engage in a “30-day sprint” to clear pending investigations into compliance breaches by regulated firms.