International Regulatory Enforcement (PHIRE)
CFTC Reaffirms Focus on Foreign Corrupt Practices
June 04, 2019
Nathaniel Edmonds, Tara K. Giunta, Michael L. Spafford & Daren F. Stanaway
In March 2019, the CFTC issued an Enforcement Advisory signaling its plan to focus investigative resources on foreign corruption connected to CFTC-regulated activities. As we reported in an earlier article, this rollout marked the agency’s first foray into a regulatory jurisdiction traditionally occupied exclusively by the DOJ and the SEC. On May 16, 2019, CFTC Enforcement Director James McDonald further described the CFTC’s new mandate, and in the months since the issuance of the Enforcement Advisory, the CFTC has commenced pursuit of its new initiative, issuing document preservation notices and requesting materials in connection with ongoing overseas bribery and corruption investigations previously opened by the SEC, DOJ, and foreign regulators in the energy sector.
The CFTC has taken steps to pursue its new mandate regarding foreign corruption issues.
Participants in CFTC-regulated markets should examine their potential exposure in this space.